The Australian dollar has likely entered a corrective phase against the U.S. dollar, according to StoneX analyst Matt Simpson. Technical charts show shooting star patterns on Thursday and Friday, with the currency pair closing below the 2023 high. Momentum has turned lower at today's open, signaling potential further declines.

Simpson identifies US$0.7100 as a near-term target for Australian dollar bears, with the weekly volume point of control at US$0.7098 hovering between key exponential moving averages. A break below this level could push the pair toward US$0.7000. The currency currently trades 0.2% lower at US$0.7151 according to LSEG data.

Meanwhile, Asian currencies weaken amid renewed tensions over the Strait of Hormuz, where a U.S. Central Command seizure of an Iranian-flagged vessel has raised concerns. OCBC Group Research strategists warn that energy risks and geopolitical brinkmanship could revive USD strength despite eventual diplomatic resolution remaining the most likely outcome.