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AUD/USD Currencies

Australian Dollar Gains on Strong Chinese Figures and USD Weakness Before US CPI Release

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  • July 15, 2025
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Australian Dollar (AUD) rose higher against the US Dollar (USD) on Tuesday, boosted by better-than-predicted economic indicators in China—Australia’s major trade partner—and weakening USD before the release of the US CPI. The Q2 GDP in China rose 5.2% year-over-year, beating estimates, and Industrial Production also surpassed expectations. Meanwhile, geopolitical tensions such as threats from ex-US President Trump of tariffs weighed on the US Dollar, together with market prudence leading up to the critical inflation data. Local confidence in Australia slightly improved but concerns persist regarding the RBA’s rate outlook, with inflation risks and global uncertainties still in the spotlight. KEY LOOKOUTS • The US Consumer Price Index report next is being closely monitored by investors, which would potentially affect the Federal Reserve’s rate decisions in the future and US dollar strength. • Even though rates remained unchanged in July, the prospects of an impending August rate cut still loom, particularly with inflation threats and subdued productivity in focus by RBA officials. • Chinese President Xi Jinping’s expected meeting with Australian Prime Minister Anthony Albanese can influence future trade and drive AUD sentiment. • Trump’s suggested tariffs on Russia, EU, and Mexico and secondary tariffs on Russian oil buyers could drive global market volatility and shape USD movements. Australian Dollar is strengthening against the US Dollar, supported by positive economic reports from China and a muted greenback in anticipation of the release of critical US inflation data. Recent better-than-expected GDP and Industrial Production figures from China have enhanced sentiment toward the AUD, as Australian trade connections are strong with China. In contrast, geopolitical tensions—such as Trump’s recent tariff threats and international trade tensions—have weighed on the USD. Locally, Australia’s consumer confidence registered a slight increase, but doubts continue regarding the next move by the Reserve Bank of Australia as well as inflation. The focus now shifts to the coming US CPI numbers, which have the potential to be a turning point for the short-term trajectory of the AUD/USD pair. Australian Dollar surged as optimistic Chinese economic figures improved investor mood, while the US Dollar declined in anticipation of crucial CPI releases. Geopolitical tensions and RBA policy uncertainty are still shaping market action. US inflation releases are awaited for additional guidance on AUD/USD direction. • AUD/USD up as impressive Chinese GDP and Industrial Production statistics improve optimism. • China’s Q2 GDP up 5.2% YoY, better than expectations of 5.1%, which supports the Aussie Dollar. • US Dollar falls in anticipation of significant CPI numbers, providing AUD/USD with upside tailwind. • Geopolitics escalates with Trump threatening fresh tariffs against Russia, EU, and Mexico. • RBA leaves rates unchanged, with potential cut in August due to inflation fears and poor productivity. • Australia’s Consumer Confidence increased modestly by 0.6% in July, reflecting modest optimism. • AUD/USD technicals exhibit bullish bias, trading close to 0.6550 in an uptrending channel. The Australian Dollar was supported on Tuesday by solid economic data from China—Australia’s biggest trade partner. China’s Q2 GDP growth of 5.2% year-on-year was higher than market forecast, while Industrial Production was also better than expected. These supportive data points boosted market sentiment in the Australian economy, given its high trade linkage with China. Also, a minor increase in Australia’s Westpac Consumer Confidence showed cautious optimism from households, even as cost-of-living pressures persist and the interest rate outlook remains uncertain. AUD/USD DAILY PRICE CHART SOURCE: TradingView At the same time, world geopolitical events have given rise to a more conservative trading climate. Threats by the former US President Donald Trump to apply very harsh tariffs on Russia, along with so-called secondary tariffs on nations that import Russian oil, have boosted fears about growing trade tensions. Additional suggested tariffs on imports of the European Union and Mexico have contributed to the uncertainty. Meanwhile, the US government registered a June budget surplus powered mainly by record customs duty receipts, underscoring the increasing influence of trade policy on economic performance. These events continue to influence market mood throughout the lead-up to the US CPI report. TECHNICAL ANALYSIS AUD/USD currency pair is exhibiting a mild bullish inclination as it hovers around the nine-day Exponential Moving Average (EMA) level of 0.6550, aided by an uptrend channel pattern on the daily chart. The 14-day Relative Strength Index (RSI) is still above the neutral 50 level, indicating that buyers continue to have a small advantage. A break above the recent high of 0.6595 would open the doors for additional gains towards the upper end of the channel at 0.6690. On the bearish side, support is immediately available at the lower edge of the upward channel at 0.6520, with more robust support at the 50-day EMA at 0.6488. FORECAST As long as the positive momentum prevails, particularly if it is supported by a softer US CPI figure or better risk appetite, the AUD/USD rate may try to break above the recent high of 0.6595. A breach of this level may draw fresh buying interest, boosting the pair to the upper edge of the rising channel in the region of 0.6690. Moreover, favorable news from the ongoing China-Australia trade talks or the easing of international tensions may further support the Australian Dollar. Conversely, if US inflation figures are hotter than anticipated, this could revive expectations for extended higher interest rates from the Federal Reserve, bolstering the US Dollar and applying pressure on AUD/USD. A fall below near-term support at 0.6520 would risk deeper losses, potentially down to the 50-day EMA around 0.6488 or even the three-week low of 0.6485. Increasing geopolitical tensions or Reserve Bank of Australia dovish hints may also put pressure on the Aussie in the short term.

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AUD/USD Currencies

Australian Dollar Remains Steady Despite Budget Release and Global Economic Unrest

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  • March 25, 2025
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The Australian Dollar stabilised after Treasurer Jim Chalmers’ release of the 2025/26 budget, which outlined anticipated deficits of A$27.6 billion in 2024-25 and A$42.1 billion in 2025-26, in addition to tax cuts to spur economic stimulus. The Reserve Bank of Australia’s restraint regarding interest rates and anticipation of Chinese stimulus both lent further support to the AUD. Nonetheless, cross-border uncertainties, such as President Trump’s US trade policies and inconsistent US economic statistics, remain possible threats. In the meantime, technical markers indicate the AUD/USD exchange rate is under stress, trending below significant levels of resistance within continuing market turmoil. KEY LOOKOUTS • The tax cuts and economic projections of the Australian government can shape investor optimism and market stability. • The Reserve Bank of Australia’s conservative approach to rate cutting and its reaction to inflation and international economic trends will be pivotal for the movement of the AUD. • Any possible tariff announcements by President Trump and how these will affect global trade, specifically Australia’s trading relationship with China and the US, may cause volatility. •The currency pair is still below major resistance at 0.6300, with support at 0.6220; a break above or below these levels may indicate the direction of the next market move. The Australian Dollar’s stability after the 2025/26 budget announcement is indicative of cautious optimism, but major factors may determine its path in the weeks ahead. The Reserve Bank of Australia’s interest rate stance continues to be a major focus, as investors weigh the chances of further policy changes. At the same time, worldwide trade tensions, especially possible US tariff announcements, may also weigh on market sentiment and the economic prospects of Australia. Of course, technical levels of resistance around 0.6300 and support at 0.6220 will also be observed closely, as a break through in either direction may indicate the next significant move for the AUD/USD pair. The Australian Dollar is stable following the budget announcement for 2025/26, with investors waiting for tax reductions and economic projections. RBA’s interest rate policy and possible US tariff implications may influence market sentiment. Technical resistance of 0.6300 and support of 0.6220 will be points of interest for AUD/USD action. • The budget for 2025/26 involves tax reductions and economic projections, with a budget deficit of A$42.1 billion for 2025-26. • The Aussie remains firm, helped by RBA holding rates and possible Chinese stimulus. • The Reserve Bank of Australia’s cautiousness towards rate cuts continues to be a leading driver of the AUD. • Looming uncertainty regarding possible tariff announcements from President Trump may generate volatility across markets worldwide. • US Services PMI jumped to 54.3, bolstering the US Dollar, while Manufacturing PMI was lower than forecasted. • Resistance at 0.6300 and support at 0.6220 will be key to deciding the pair’s next direction. • Beijing’s proposals to enhance consumption and wages would indirectly assist the Australian economy because of robust trade links. The Australian Dollar held firm after Treasurer Jim Chalmers delivered the 2025/26 budget that provided significant economic predictions, such as tax relief intended to ease money woes for households. The budget estimates a 2024-25 deficit of A$27.6 billion and A$42.1 billion for 2025-26, as the government aims to balance economic growth with fiscal prudence. Moreover, the GDP of Australia is predicted to expand by 2.25% in 2026 and 2.5% in 2027, indicating modest economic growth. The Reserve Bank of Australia (RBA) remains cautious in its interest rate moves, keeping inflation under control while fostering economic stability. AUS/USD DAILY PRICE CHART CHART SOURCE: TradingView The Australian Dollar maintained its calmness after Treasurer Jim Chalmers presented the 2025/26 budget that made important economic projections, such as the reduction of tax that would help alleviate financial burdens on households. The budget forecasts a deficit of A$27.6 billion for 2024-25 and A$42.1 billion for 2025-26, which shows that the government is striking a balance between economic growth and fiscal prudence. Moreover, Australia’s GDP is projected to increase by 2.25% in 2026 and 2.5% in 2027, indicating moderate economic growth. The Reserve Bank of Australia (RBA) remains cautious in its interest rate policy, keeping inflation under control while maintaining economic stability. TECHNICAL ANALYSIS The AUD/USD currency pair is trading around 0.6290, with technical indicators indicating a cautious market mood. The currency pair continues to be in a bearish trend and trades in a falling channel. The 14-day Relative Strength Index (RSI) is at a level slightly below 50, which means the currency has weak momentum. The important support remains at 0.6220 and breaking below this may drag the pair towards its seven-week low of 0.6187. Resistance on the upside comes at 0.6308 (nine-day Exponential Moving Average) and 0.6310 (50-day EMA). A breakout above these levels may signal short-term bullish momentum, while continued rejection at resistance may reinforce the prevailing downtrend. FORECAST The outlook for the Australian Dollar is mixed and dependent on both local and international considerations. To the upside, solid economic fundamentals from Australia, such as better Manufacturing and Services PMI reports, can underpin the AUD. Also, hopes of further stimulus from China, Australia’s biggest trading partner, could increase demand for Australian exports, supporting the currency. If the Reserve Bank of Australia continues to be cautious on interest rates without hinting at aggressive cuts, investor sentiment in the AUD might stay firm. A move above key technical resistance levels at 0.6310 could pave the way for more gains in the near term. But downside risks remain as uncertainty regarding US trade policies hangs in the air. Possible tariff announcements by President Trump have the potential to upset global trade and hurt risk-sensitive currencies such as the AUD. The US Dollar is also supported by robust Services PMI data and dovish comments from Federal Reserve officials, which could cap the AUD’s upside. If the AUD/USD currency pair is unable to sustain support at 0.6220, then further losses towards 0.6187 may be anticipated, supporting a bearish trend in the short term.

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