**The AUD/USD Extends Its Upside Momentum: A Comprehensive Analysis**
*Adapted from economies.com’s August 28, 2025 analysis, with supplementary information provided for greater depth and context. Original author: Economies.com team.*
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The Australian dollar (AUD) continued to make notable advances against the US dollar (USD), reflecting ongoing shifts in market sentiment, monetary policy expectations, and broader global economic trends. The recent surge in the AUD/USD currency pair captures the attention of forex traders and market analysts. This article provides a deep dive into the factors propelling the AUD higher, the technical and fundamental outlook for the pair, and considerations for both medium- and long-term traders.
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**Recent Trends in AUD/USD Performance**
– The AUD/USD pair has extended its gains over the past trading sessions.
– The pair is currently trading above key short-term support levels, with upward momentum bolstered by both domestic and international factors.
– Bullish sentiment has been sustained despite occasional profit-taking, indicating strong underlying demand for the AUD.
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**Technical Analysis Update (as of August 28, 2025)**
To understand the current trajectory of the AUD/USD pair, technical analysis offers critical insights:
– Price movement is currently above the 50-period exponential moving average (EMA), suggesting ongoing bullish conditions.
– Recent price action saw a break through several resistance levels. The current support is established around 0.6600, with further support at 0.6550.
– Resistance levels to watch are located at 0.6700 and 0.6750. Breaching these could open the way for further upside.
– Momentum indicators such as the Relative Strength Index (RSI) stand in the neutral-to-bullish zone, indicating there is room for prices to move higher before becoming overbought.
**Key Technical Levels:**
– Immediate Support: 0.6600
– Secondary Support: 0.6550
– First Resistance: 0.6700
– Second Resistance: 0.6750
*Technical patterns suggest a continuation of the uptrend as long as price action remains above the specified support zones. A sustained move above resistance could reinforce bullish scenarios, while dips towards support may present new buying opportunities for traders.*
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**Fundamental Factors Driving AUD Strength**
The recent appreciation in the Australian dollar against the US dollar is underpinned by several critical economic factors:
*1. Reserve Bank of Australia’s (RBA) Policy Outlook:*
– The RBA has signaled a cautious but steady approach to monetary policy, diverging slightly from the aggressive stance of the US Federal Reserve.
– Market participants anticipate the RBA may hold or mildly adjust interest rates in response to evolving domestic inflation and growth figures.
– This relative stability has attracted investor confidence in the AUD, especially in the context of global currency volatility.
*2. US Federal Reserve’s Policy Shift:*
– After a period of consistent rate hikes, the US Federal
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