AUD/USD rallies as Hormuz reopening eases oil shock fears, risk sentiment improves

AUD/USD hits range high as Hormuz reopening boosts risk sentiment.
Easing Oil supply fears reduce safe-haven demand for the Greenback.
Trump signals temporary Iran-related restrictions remain, but overall tone points to de-escalation.

Agustin Wazne FXStreet

The AUD/USD surged toward the 0.7200 price region on Friday, as improving headlines out of the Middle East weigh on the US Dollar (USD) and support risk-sensitive currencies like the Australian Dollar (AUD).

Market sentiment has shifted following announcements that the Strait of Hormuz is now “fully open and ready for full passage.” This development eases concerns about prolonged supply disruptions in global energy markets.

A subsequent statement by United States (US) President Donald Trump clarified that while the Strait is operational for business, certain naval restrictions specifically related to Iran will remain temporarily in place as negotiations near completion. Overall, the tone indicates de-escalation and positive progress.

This situation has led to a decline in demand for the USD, which had previously been bolstered by heightened geopolitical tensions and concerns over Oil supplies. With energy route stability improving, Oil prices are expected to stabilize or decline, which would lower inflationary risks and alleviate pressure on global central banks.

Short-term technical analysis:

On the four-hour chart, AUD/USD trades at 0.7194. The pair maintains a bullish near-term bias as price holds above both the 20-period Simple Moving Average (SMA) at 0.7159 and the longer-term 100-period SMA at 0.6996, keeping the broader uptrend structure intact. The immediate focus is on how price behaves around the 0.7194 pivot, while the Relative Strength Index (14), hovering just above 70, hints at stretched but still constructive upside momentum rather than an outright reversal signal.

On the topside, initial resistance is defined by the current pivot area at 0.7194, with a subsequent hurdle at 0.7221, where sellers could look to fade further strength. On the downside, first support aligns at 0.7171, ahead of 0.7162 and the nearby 20-period SMA at 0.7159, levels that collectively underpin the short-term bullish structure; a deeper pullback toward the 100-period SMA at 0.6996 would be needed to seriously challenge the prevailing uptrend.

(The technical analysis of this story was written with the help of an AI tool.)

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

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