It’s only 5 weeks ago that the RBA surprised FX traders by keeping interest rates on hold to provide policymakers with extra time to assess new information on the Australian economy and to confirm that the direction of inflation is moving back down towards 2.5% on a sustainable basis. This decision helped AUDUSD to post a 2025 high of 0.6625 on July 24th, a level from which fresh selling reappeared resulting in a low of 0.6419 being touched on August 1st.
August has so far been a positive one for AUDUSD, with general US dollar weakness seeing this popular currency pair closing on Friday at 0.6522, right in the middle of the range identified above. This week, Tuesday is potentially the pivotal day for AUDUSD traders to focus on with the RBA Interest Rate Decision due at 0530 BST, which is then quickly followed by the press conference led by Governor Bullock starting at 0630 BST.
A 25bps (0.25%) RBA rate cut is fully priced so anything else would probably be an even bigger surprise than the July pause. Especially since the latest Q2 CPI print showed inflation moving lower, a move acknowledged by RBA Deputy Governor Hauser as a welcome development. This shifts the emphasis towards the press conference where AUDUSD traders will be keen to hear whether their expectations for more rate cuts from the RBA into the first quarter of 2026 are correct or well off base.
That’s the AUD side of the pair covered, then later Tuesday the focus shifts to the US dollar side, when the latest US CPI update is released at 1330 BST. FX traders are very sensitive to the direction of US inflation, and the outcome of this release could well influence whether the Federal Reserve cut interest rates at their next meeting in September, as traders expect, or if they could be forced to remain unchanged as President Trump’s tariffs start to lead to higher prices, something Fed Chairman Powell has stated policymakers are concerned about.
Strap in AUDUSD traders tomorrow could be a wild and volatile ride!
Technical Update: Is the 0.6521 Level Pivotal?
So far, August has seen AUDUSD rally from the August 1st low into last Thursday’s high by just under 2%. While this activity may lead to some traders anticipating a more sustained period of strength, looking at the chart below, it becomes evident that further confirmation may be required before jumping to this conclusion.
Price strength seen last Thursday and Friday, was held by the 0.6521 price level, which is equal to half the decline that materialised between July 24th and August 1st. While 0.6521 is currently being tested, this looks like the first potential resistance focus, with closing breaks above this level required to suggest further strength towards 0.6625, the July 24th high.
As for support, traders may well now be focused on the 0.6480 level, which is half of the August price strength. While not a guarantee of prolonged declines, successful closing breaks below the 0.6480 support, might suggest continued price weakness.
As the chart above shows, closing breaks below the 0.6480 level, may see prices under increasing pressure, with possibilities to then test the August price low at 0.6419, even 0.6355, which is the 38.2% Fibonacci retracement of April 9th to July 24th 2025 strength.
The material provided here has not been prepared accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
August has so far been a positive one for AUDUSD, with general US dollar weakness seeing this popular currency pair closing on Friday at 0.6522, right in the middle of the range identified above. This week, Tuesday is potentially the pivotal day for AUDUSD traders to focus on with the RBA Interest Rate Decision due at 0530 BST, which is then quickly followed by the press conference led by Governor Bullock starting at 0630 BST.
A 25bps (0.25%) RBA rate cut is fully priced so anything else would probably be an even bigger surprise than the July pause. Especially since the latest Q2 CPI print showed inflation moving lower, a move acknowledged by RBA Deputy Governor Hauser as a welcome development. This shifts the emphasis towards the press conference where AUDUSD traders will be keen to hear whether their expectations for more rate cuts from the RBA into the first quarter of 2026 are correct or well off base.
That’s the AUD side of the pair covered, then later Tuesday the focus shifts to the US dollar side, when the latest US CPI update is released at 1330 BST. FX traders are very sensitive to the direction of US inflation, and the outcome of this release could well influence whether the Federal Reserve cut interest rates at their next meeting in September, as traders expect, or if they could be forced to remain unchanged as President Trump’s tariffs start to lead to higher prices, something Fed Chairman Powell has stated policymakers are concerned about.
Strap in AUDUSD traders tomorrow could be a wild and volatile ride!
Technical Update: Is the 0.6521 Level Pivotal?
So far, August has seen AUDUSD rally from the August 1st low into last Thursday’s high by just under 2%. While this activity may lead to some traders anticipating a more sustained period of strength, looking at the chart below, it becomes evident that further confirmation may be required before jumping to this conclusion.
Price strength seen last Thursday and Friday, was held by the 0.6521 price level, which is equal to half the decline that materialised between July 24th and August 1st. While 0.6521 is currently being tested, this looks like the first potential resistance focus, with closing breaks above this level required to suggest further strength towards 0.6625, the July 24th high.
As for support, traders may well now be focused on the 0.6480 level, which is half of the August price strength. While not a guarantee of prolonged declines, successful closing breaks below the 0.6480 support, might suggest continued price weakness.
As the chart above shows, closing breaks below the 0.6480 level, may see prices under increasing pressure, with possibilities to then test the August price low at 0.6419, even 0.6355, which is the 38.2% Fibonacci retracement of April 9th to July 24th 2025 strength.
The material provided here has not been prepared accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
Global risk Warning CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading in CFDs. You should consider whether you understand how CFD
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Global risk Warning CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading in CFDs. You should consider whether you understand how CFD
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.