• AUD/USD opens 0.25% higher despite broadly stronger U.S. dollar

• Risk aversion, higher oil prices, U.S-Iran escalation taken in stride

• Rally despite higher Treasury yields impressive; U.S. 10-year yield up 5bps

• 38.2% Fibo of May-June drop at 0.7023 continues to cap AUD rise

• AUD/NZD recovers from a near 4-month low hit Mon; Tue NZ Q2 CPI key

• AUD rally continues to be capped by 38.2% Fibo of May-June drop at 0.7023

• Strong support at 0.6960-65; Monday range 0.6960-0.7014
AUD:

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