**AUD/USD Analysis: Building Positive Momentum**
*Adapted, expanded, and updated from the original analysis by Economies.com.*
**Overview**
As of late October 2025, the AUD/USD currency pair has been showing signs of strengthening bullish momentum, sparking significant attention from both technical traders and fundamental analysts. The Australian dollar’s performance against the US dollar is being supported by improving domestic economic data, evolving monetary policy stances from both the Reserve Bank of Australia (RBA) and the US Federal Reserve, and changing macroeconomic conditions globally.
This comprehensive analysis will explore:
– The recent price action and technical outlook for AUD/USD
– Key fundamental influences impacting the currency pair
– Market expectations and risk factors moving forward
– A detailed technical analysis including support and resistance levels
– How traders and investors can approach AUD/USD in this context
**Recent Price Action**
Over the past several trading sessions, the AUD/USD pair has established a series of higher lows, indicating that buying pressure is returning to the Australian dollar.
Key observations from recent price performance:
– The pair rebounded from a significant technical support area near 0.6250, as buyers stepped in following a brief dip.
– AUD/USD is currently trading above its short-term moving averages (20 and 50 periods on the 4-hour chart), further suggesting that bullish sentiment is developing.
– Trading volumes have increased as the pair approached the 0.6400 region, reinforcing the growing interest from market participants.
– The price is testing a crucial resistance zone around 0.6440, which, if breached, could open the way for a more sustained upward move.
Several technical indicators support the current bullish scenario:
– The Relative Strength Index (RSI) on the daily chart is gradually moving toward the 60 level, reflecting increasing buying strength but remaining below overbought conditions.
– The Moving Average Convergence Divergence (MACD) indicator has produced a positive crossover, typically seen as an early signal of a potential upward trend.
– The pair is supported by a rising trend line connecting the recent lows, enhancing the technical case for further gains.
**Fundamental Drivers: Australian Dollar**
The Australian dollar’s prospects have brightened compared to earlier in the year, owing to multiple factors:
1. **Improving Economic Data**
– Australia’s labor market retains surprising resilience, with the latest jobs report showing strong employment growth and an unchanged unemployment rate at 3.7 percent.
– Retail sales figures have exceeded expectations, suggesting continued robust consumer demand.
– Inflationary pressures remain elevated, with the Consumer Price Index at 4.4 percent year-on-year, above the RBA’s 2 to 3 percent target range.
2. **Reserve Bank of Australia (RBA) Policy**
– The RBA has maintained a cautious but hawkish tone, signaling its willingness to increase interest rates if inflation remains stubborn.
– Minutes from the latest meeting confirmed that board members are prepared to act if
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