**AUD/USD Forex Analysis and Trading Signals for 21 August 2025**
*Based on the original article by Adam Lemon, with added insights and expanded analysis for improved depth and understanding.*
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### **Overview of AUD/USD Price Action**
The AUD/USD, representing the Australian Dollar against the US Dollar, continues to be driven by a combination of fundamental and technical factors. As of 21 August 2025, the currency pair has been displaying notable volatility, reacting to both macroeconomic releases and broader market sentiment.
Recently, the AUD/USD has been influenced by shifting expectations around monetary policies from the Reserve Bank of Australia (RBA) and the US Federal Reserve, commodity price fluctuations, particularly in iron ore, and varying risk appetite in global markets. These developments have led to pronounced movements, providing both opportunities and risks for traders.
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### **Key Fundamental Factors Influencing AUD/USD**
#### **Reserve Bank of Australia Monetary Policy**
– The RBA’s stance on interest rates has maintained a generally dovish tone in recent statements, aiming to support economic growth.
– Inflationary pressure in Australia has remained moderate, keeping the central bank cautious about aggressive tightening.
– The confluence of steady rates and accommodative policy has at times weighed on the Australian Dollar, especially relative to the stronger US Dollar.
#### **Federal Reserve Policy**
– The Federal Reserve, meanwhile, has pursued a data-driven approach, responding to robust employment figures and persistent inflation.
– The US Dollar has benefited from the Fed’s relatively hawkish outlook, bolstering its performance against the Australian Dollar.
#### **Commodities and Trade**
– Australia’s economy is closely tied to commodity exports, particularly iron ore and coal. Recent fluctuations in global commodity prices have directly impacted AUD demand.
– Stronger demand from China has historically boosted AUD, but any slowdown in Chinese growth or trade tensions can have quick adverse effects.
#### **Risk Sentiment and Global Growth Outlook**
– The AUD typically acts as a “risk-on” currency, appreciating in periods of global economic optimism and declining during uncertainty.
– Recent geopolitical uncertainties and concerns around global growth have introduced downward pressure on the currency.
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### **Technical Analysis of AUD/USD**
#### **Recent Price Action**
– The AUD/USD pair reached a well-defined resistance zone in the .6525 region.
– After testing that level, the pair exhibited a bearish reversal, indicating a potential exhaustion of buyers.
– The formation of a lower high, followed by a lower low, supports the view of growing bearish sentiment.
#### **Support and Resistance Levels**
The following are the most relevant nearby technical levels:
– **Major Resistance**: 0.6525
Previously tested and rejected. A sustained break above this would indicate renewed bullish momentum.
– **Intermediate Resistance**: 0.6500
Psychological level and intraday pivot point in recent sessions.
– **Immediate Support**: 0.6480
The market has shown buying interest on dips to this level. A
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