Forex Market Update: Australian Dollar/US Dollar
The Australian Dollar (AUD) has been making headlines in the forex market, trading near its 2025 high against the US Dollar (USD). As of July 24, 2025, the AUD/USD pair has been buoyed by a combination of improved risk sentiment and robust economic data, pushing it to an 11-month high. The pair recently broke through a key resistance level at 0.6600, reaching its highest point since August 2024.
Key Drivers of AUD/USD Movement
Risk Sentiment and Economic Data: The AUD/USD has benefited from a positive shift in global risk sentiment, supported by resilient Purchasing Managers’ Index (PMI) data. Hawkish comments from the Reserve Bank of Australia (RBA) have further fueled the bullish momentum, driving the pair to eight-month highs.
Technical Analysis: The AUD/USD has maintained its uptrend above the 50-day moving average (DMA), as noted by Societe Generale. Despite some easing, the pair remains near its year-to-date (YTD) highs above 0.6600, indicating a strong bullish outlook.
Market Sentiment: Mixed sentiment in global markets, driven by optimism over potential trade deals and anxiety ahead of key economic data releases, has also played a role. The anticipation of the European Central Bank’s interest rate decision adds to the market’s cautious optimism.
Market Reactions and Forecasts
Forex Street Analysis: Analysts from Forex Street have highlighted the likelihood of further upside for the AUD/USD, given the current market conditions. The pair’s recent performance suggests a continuation of its upward trajectory.
UOB Group’s Perspective: While acknowledging the recent gains, UOB Group cautions that any further advance may not reach the 0.6625 level, suggesting a potential consolidation phase.
Broader Market Context
Global Market Dynamics: The broader market context includes mixed sentiments due to ongoing trade negotiations and upcoming economic data releases. The Canadian dollar’s rally has stalled, reflecting similar market dynamics affecting the AUD/USD.
Corporate Announcements: In Australia, NOVONIX Limited’s announcement of the first tranche of convertible debentures and the release of second-quarter earnings results by Newmont Corporation have contributed to market activity.
As the AUD/USD continues to navigate these dynamics, traders and investors will closely monitor economic indicators and central bank communications to gauge future movements. The current bullish trend, supported by strong fundamentals and technical indicators, suggests a positive outlook for the Australian Dollar against the US Dollar in the near term.