• Hopes of US/Iran deal to end the conflict and restart oil flow have aided risk sentiment and ultimately AUD on Monday

• AUD/USD testing top of 19 May 0.7080-0.7177 daily range, which has contained the pair

• 10-dma (0.7173) crossed below 21-dma (0.7186) last week - a bearish sign - but closing above those levels can negate

• 50-dma continues to underpin at 0.7099, but a close below could see bearish sentiment build

• FX option implied volatility met demand on spot setbacks and retains higher levels - a warning and a value hedge
AUD=D3


(Richard Pace is a Reuters market analyst. The views expressed are his own)