• AUD/USD opens unchanged after failing to sustain a rise to a 1-month high

• Rally thwarted by USD strength; DXY at 1-week high as Treasury yields climb

• Iran war escalation and elevated oil prices boost Fed rate hike bets

• U.S.-10 year yield rises to 2-mth high on inflation concerns, capping AUD

• AUD outperforms as stocks, metals rally; AUD/JPY +0.45%, hits 7-week high

• But failure to sustain break of 0.7023, 38.2% Fibo of May-June drop bearish

• More resistance at 0.7050, 0.7070-75; support 0.6985-90, 0.6960-65

• Tuesday range 0.6993-0.7027
AUD:

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