• AUD/USD hovers near a three-week high after closing 0.85% higher Tuesday

• Boosted by softer-than-expected U.S. June CPI, cooling Fed rate hike bets

• Strong U.S. bank earnings, recovery in chip shares lift risk, support AUD

• Upside likely limited on U.S.-Iran hostilities, higher oil prices

• Fed Chair Warsh says focused on inflation, doubles down on Fed's 2% target

• Resistance 0.6995-0.7000, 0.7020-25, support 0.6960-65, 0.6940, 0.6910-20

• China Q2 GDPand monthly activity data eyed Wed; Tue range 0.6913-0.6992
AUD:

(Krishna Kumar is a Reuters market analyst. The views expressed are his own.)