**AUD/USD Forex Signal Analysis for July 31, 2025**
*Based on insights originally provided by Dr. Christopher Lewis at DailyForex.com, expanded and developed for thorough market analysis.*
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### Introduction
The AUD/USD currency pair is widely favored among forex traders owing to its strong liquidity, susceptibility to global risk sentiment, and responsiveness to economic announcements both in Australia and the United States. As we approach July 31, 2025, the pair remains in focus, offering dynamic trading opportunities. This article presents an in-depth technical and fundamental analysis for AUD/USD, integrating the core perspective outlined by Dr. Christopher Lewis on DailyForex.com alongside additional insights from other reputable sources.
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### Current Market Overview
#### Recent Price Activity
– The AUD/USD pair has experienced notable fluctuations over the past month, reflecting a tug of war between hawkish Federal Reserve sentiment and the Reserve Bank of Australia’s (RBA) cautious outlook.
– On the daily timeframe, the currency pair has cycled between key support near 0.6600 and resistance just above 0.6775, with a reluctance to break out convincingly in either direction.
– Strength in US employment figures and resilience in US GDP data have provided consistent underpinnings for the US dollar, capping AUD/USD upside moves, while Australian employment data and commodity prices (notably iron ore and coal) have kept the downside somewhat contained.
#### Broader Market Sentiment
– Risk appetite continues to sway the pair, as the Australian dollar is often used as a proxy for global growth due to the nation’s resources-heavy economy.
– Market participants remain attentive to cues from both central banks and shifts in commodity prices, creating near-term volatility.
– The unfolding trade relations between China and Australia, as well as uncertainty about future interest rate moves, are adding yet another layer of complexity for traders.
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### Fundamental Analysis
#### Key Drivers Impacting AUD/USD
– **Central Bank Policy Divergence**
– The RBA signaled a data-driven approach, remaining non-committal about future rate hikes, with inflation appearing to plateau near the upper target range.
– The US Federal Reserve has reaffirmed its intention to keep monetary policy tight until inflation convincingly returns to target, with minimal expectation of near-term rate cuts.
– **Economic Data Releases**
– Recent Australian employment figures exceeded consensus, temporarily boosting the AUD.
– US CPI inflation continues to print above the Federal Reserve’s 2 percent target, underpinning the greenback.
– **Commodities and Geopolitical Events**
– Higher iron ore prices have lent temporary support to the Australian currency.
– Ongoing trade negotiations between China and Australia, and any perceived uptick in risk aversion from geopolitical unrest, could either weigh on or buoy the AUD.
– **Risk Appetite**
– The global risk environment, as reflected in equity and bond markets, often drives demand for the Australian dollar. Heightened risk aversion typically leads to an
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