**AUD/USD Price Surges Higher: Analysis and Forecast (29 Dec 2025)**
*Based on analysis from economies.com, with additional insights.*
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## Introduction
The Australian Dollar to US Dollar (AUD/USD) currency pair witnessed a significant surge in price, attracting attention of traders and market analysts worldwide. As we approach the end of 2025, understanding the factors behind this move and what the future may hold is imperative for forex traders and investors. This comprehensive analysis delves into the technical details, fundamental influences, and broader market sentiment driving the AUD/USD’s current rally and what could lie ahead.
**Credit: Original analysis by economies.com**
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## Recent Price Performance
The AUD/USD pair has shown notable bullish momentum in recent sessions. The price overcame key resistance levels, with the rally signaling potential for extended gains.
– Recent highs indicate growing market confidence in the Australian Dollar.
– Technical breakout above the 0.6900 level, attracting bullish flows.
– Follow-through buying was seen after surpassing short-term resistance zones.
– The surge was accompanied by an increase in trading volume, confirming the move’s validity.
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## Technical Analysis
### Key Resistance and Support Levels
Detailed below are significant technical levels currently in play for the AUD/USD pair:
– **Resistance Levels**
– 0.7000: A psychological barrier and multi-month high.
– 0.7050: Next major upside target as per recent highs.
– 0.7100: Strong resistance from early 2023 price action.
– **Support Levels**
– 0.6900: Previous resistance turned support.
– 0.6850: 50-day moving average coincides with this level, offering medium-term support.
– 0.6800: Key pivot, previously tested during pullbacks.
### Chart Pattern and Indicators
Technically, the pair presents strong bullish signals:
– Price is trading above both 50-day and 200-day moving averages, indicating an established uptrend.
– The Relative Strength Index (RSI) has entered the 65-70 region, reflecting strong buying momentum but highlighting risk of short-term overbought conditions.
– MACD histogram remains above the signal line, further confirming upward momentum.
– Recent price action formed a bullish engulfing candle pattern, increasing prospects for further gains.
### Trend Projection
– As long as the pair holds above the 0.6900 mark, bullish prospects remain intact.
– If price retreats below 0.6900, a corrective phase towards 0.6850 and below could occur.
– Sustained closes above 0.7000 can signal continuation towards 0.7050 and potentially 0.7100.
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## Fundamental Analysis
A comprehensive look at the underlying factors influencing the AUD/USD’s movement:
### Australian Economic Data
Several recent developments underpin the Australian Dollar’s strength:
– Australia’s GDP growth in late 2025 exceeded market expectations, supported by
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