**The AUD/USD Faces New Bullish Momentum: Comprehensive Analysis**
*Adapted and expanded from an article by Economies.com (05 August 2025)*
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The Australian dollar (AUD) paired with the US dollar (USD), frequently referred to as the “Aussie,” is among the most actively traded currency pairs in the Forex market. Recent market movements suggest that the AUD/USD pair is attempting to cultivate new bullish momentum, raising questions about the future trajectory of this highly-watched currency pair.
This article presents an in-depth overview of the technical and fundamental dynamics impacting the AUD/USD as it attempts to gain bullish momentum as of early August 2025. We draw on analysis from Economies.com, with extension and added context from additional reputable financial sources.
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### 1. **Technical Picture of AUD/USD**
The AUD/USD pair has demonstrated efforts to rebound and solidify an upward trend. According to the original assessment by Economies.com:
– **Recent Performance:** After experiencing downward corrections in previous sessions, the pair is testing new resistance levels, trying to establish higher lows and test the boundaries of a nascent bullish wave.
– **Key Indicators:**
– The pair is challenging the 0.6700 psychological threshold.
– Moving averages indicate mixed short-term prospects, with the 50-day EMA acting as dynamic support.
– Oscillators such as the Relative Strength Index (RSI) show values near 50, highlighting a potential shift in momentum but without clear overbought or oversold signals.
**Additional Technical Levels to Monitor:**
– **Resistance Levels:**
– 0.6720: Previous swing high and immediate hurdle.
– 0.6755: An established higher resistance from earlier in 2025.
– 0.6800: A round number and significant psychological barrier.
– **Support Levels:**
– 0.6650: Recent low, acting as a vital short-term support.
– 0.6615: June’s close and critical intermediate support.
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### 2. **Fundamental Factors at Play**
Several macroeconomic and geopolitical factors are influencing the direction of the AUD/USD. The following are key drivers as identified in the original analysis and corroborated by other sources including Bloomberg and Reuters:
#### Economic Data Releases
– **Australian Economic Strength:**
– Strong Q2 GDP figures exceeded forecasts, supporting the Aussie dollar.
– The latest Retail Sales data saw a modest uptick, suggesting resilience in domestic consumption.
– **US Developments:**
– Mixed labor market data from the US Non-Farm Payrolls report created volatility, as job growth slowed but wage inflation persisted.
– Ongoing speculation about future Federal Reserve policy moves has a pronounced impact on the US dollar and, by proxy, the AUD/USD pair.
#### Commodity Market Influence
– **Iron Ore Prices:**
– Since Australia is the world’s leading iron ore exporter, the sharp rebound
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