**AUD/USD Under Sustained Negative Pressure: In-Depth Analysis**
*Based on the analysis published by Economies.com, expanded and supplemented with updated information from other industry sources.*
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## Overview
The Australian Dollar (AUD) faced mounting bearish pressure against the US Dollar (USD) as indicated in recent trading sessions. The AUD/USD pair’s performance continues to reflect broader market sentiment shaped by international economic policies, risk appetite fluctuations, and pivotal data releases from both Australia and the United States. As global forex markets experience ongoing volatility driven by monetary policy divergence, inflation trends, and geopolitical dynamics, traders must closely monitor the evolving narrative surrounding this important currency pair.
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## Price Action and Technical Assessment
Over recent weeks, AUD/USD has been trading under significant pressure. The pair recorded further declines, challenging key support zones and signaling potential for additional downward movement. The technical landscape, as observed in the Economies.com article published on August 18, 2025, captures several important aspects:
– **Persistent Negative Trend**: The bearish momentum for AUD/USD has strengthened, as the pair continued to face headwinds below the major pivot levels.
– **Support and Resistance Levels**:
– The immediate resistance zone is identified near 0.6485, corresponding with the price’s previous consolidation efforts.
– The primary support is now in the 0.6420-0.6400 range. A decisive break below this area could open the door for an extension toward 0.6300.
– **Moving Average Indicators**:
– The 50-period Simple Moving Average (SMA), a key barometer of short-term trend direction, continues to cap upside recoveries.
– Sustained trading below both the 50 and 100-period SMAs suggests a firmly entrenched bearish bias.
– **Momentum Oscillators**:
– Relative Strength Index (RSI) readings are hovering near oversold levels, which, while indicating stretched conditions, have yet to trigger a robust recovery.
– The Moving Average Convergence Divergence (MACD) indicator maintains a bearish crossover, reinforcing expectations of continued downside risks.
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## Fundamental Driving Factors
The exchange rate between the Australian and US Dollars responds to a multitude of macroeconomic influences. In recent analyses, several core themes have emerged:
### 1. Divergence in Central Bank Policy
– **Federal Reserve Rate Trajectory**: The US Federal Reserve’s commitment to keeping interest rates higher for longer has bolstered the US Dollar’s appeal, attracting yield-seeking capital globally. Market expectations remain that the Fed will maintain a restrictive stance until there is unequivocal evidence of inflation moving towards its long-term target. This hawkish bias underpins persistent downward pressure on AUD/USD.
– **Reserve Bank of Australia (RBA) Position**: In contrast to the Fed, the RBA has adopted a more cautious tone. While inflation remains above target in Australia, there are increasing signs of softening domestic growth and rising unemployment. The
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