AUD/USD has staged a formidable restoration following the sharp drop triggered by the U.S. Liberation Day tariffs!
The pair is now testing a resistance degree that has outlined the worth ceiling for many of 2025.
Will we see a bullish breakout within the subsequent few days?
AUD/USD Every day Foreign exchange Chart by TradingView
Latest commodity worth power has helped enhance the Aussie, with iron ore and base metals seeing renewed demand from a recovering Chinese language manufacturing sector. Moreover, the Reserve Financial institution of Australia’s (RBA) choice to carry charges regular whereas markets anticipate potential Fed cuts has created a positive rate of interest differential for AUD.
In the meantime, the U.S. greenback has suffered a broad-based decline on account of intensifying commerce disputes and financial information surprises. Trump’s announcement of a 90-day tariff pause (excluding China) offered aid for risk-sensitive currencies like AUD, whereas China’s alerts that it wouldn’t escalate commerce tensions additional calmed market fears.
Do not forget that directional biases and volatility circumstances in market worth are usually pushed by fundamentals. In the event you haven’t but achieved your homework on the U.S. and Australian {dollars}, then it’s time to take a look at the financial calendar and keep up to date on each day basic information!
Will these result in AUD/USD making new 2025 highs?
AUD/USD has climbed above the 100 SMA, suggesting enhancing short-term momentum. Nonetheless, each 100 and 200 SMAs stay in a downward slope, indicating the longer-term bearish bias isn’t utterly over but.
Bullish candlesticks and constant buying and selling above the .6400 psychological deal with might bump AUD/USD to the R2 (.6479) Pivot Level line close to the 200 SMA.
But when AUD/USD finds bearish stress at its present ranges and .6400 holds as resistance, then AUD/USD might drop again to the .6300 psychological degree, if not the S1 (.6159) Pivot Level space.
Whichever bias you find yourself buying and selling, don’t overlook to apply correct threat administration and keep conscious of top-tier catalysts that would affect general market sentiment!