**AUD/USD Analysis: The Currency Pair Gains Support and Looks Ahead**
*Adapted and expanded from the original analysis by Economies.com (August 26, 2025)*
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## Introduction
The Australian dollar (AUD) against the US dollar (USD) remains one of the most watched currency pairs for both short-term traders and long-term investors. The AUD/USD, often called the “Aussie,” is known for its volatility and sensitivity to global economic news, commodity prices, and shifts in monetary policy from either the Reserve Bank of Australia (RBA) or the US Federal Reserve (Fed). As of late August 2025, the AUD/USD has exhibited signs of stabilizing after a period of downward pressure. This article explores the current technical and fundamental factors influencing the pair, ongoing trends, support and resistance levels, and what traders should watch for going forward.
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## Recent Price Action and Technical Overview
The AUD/USD recently found support following a corrective wave that pushed the pair to fresher lows on the chart. The following technical developments are noteworthy:
– The AUD/USD approached a major support level, prompting buyers to enter the market and slow the pace of the decline.
– The pair is consolidating above a key horizontal region, which indicators suggest could lay the groundwork for a potential rebound.
– The 50-day Simple Moving Average (SMA) has acted as an immediate resistance in the current structure. A clear break above it could open doorways to higher levels.
– The Relative Strength Index (RSI) was previously in oversold territory but has since returned to more neutral readings. This may indicate that bearish momentum is waning.
– Short-term charts display a minor ascending trend line supporting the price, indicating that buyers are tentatively stepping back in.
### Key Technical Levels
– **Support:** The primary support is situated near the 0.6400 level, which coincides with previous reaction lows. Below that, attention is on the 0.6300 handle.
– **Resistance:** The initial barrier rests around the 0.6520 level. Additional resistance is seen at the 0.6600 mark, followed by the psychological zone at 0.6700.
### Indicators to Watch
– Exponential Moving Averages on the 4H and daily charts for crossover signals.
– Candlestick formations near current support zones to detect changes in momentum.
– Volume spikes or divergences on oscillators, as these may precede trend reversals.
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## Fundamental Drivers Impacting the AUD/USD
Movements in the AUD/USD pair are rarely influenced by technicals alone. Several fundamental themes are shaping its trajectory:
### Australian Economic Outlook
– **Economic Growth:** Recent GDP figures out of Australia suggest modest but positive expansion. Services and resource exports remain robust, but softness in the domestic property market continues to weigh on sentiment.
– **Monetary Policy:** The Reserve Bank of Australia has maintained cautious guidance, opting to keep the official cash rate
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