Aussie Dollar Surges as RBA Shocks Markets and U.S. Dollar Sinks: Is AUD/USD Headed to 0.66 and Beyond?
The AUD/USD currency pair is steadily trading near 0.6510, drawing strong attention from forex traders and investors alike. This sharp resilience is powered by a surprising Rate Pause by the Reserve Bank of Australia (RBA), which kept the cash rate at 3.85% during its July 2025 meeting in a 6–3 vote, defying market expectations of further easings. That decision triggered an immediate 0.8% gain in the Australian dollar, setting a bullish tone for the pair.
With the Aussie buoyed, the U.S. dollar DXY index has weakened, sliding more than 13% year-to-date amid mounting fiscal deficit concerns and escalating trade policy uncertainty. As the greenback loses momentum, the upward tilt in AUD/USD appears increasingly sustainable.
Beyond central banks, Australian economic indicators, like a jump in unemployment to 4.3%, suggest slowing momentum at home and hint at possible rate cuts by August. Such a move could offer further lift to AUD/USD if implemented cautiously.
On the technical front, AUD/USD remains sandwiched between key moving averages: just above the 50-day EMA (~0.6475) and below the 200‑day EMA (~0.6550). A breakout above 0.6580–0.6600 could test resistance zones near 0.6600, while a fall below recent support at 0.6470 might open room to 0.6400 and beyond.
Overall, traders tracking AUD/USD (ticker on forex and ASX markets) remain alert to RBA guidance, U.S. CPI prints, Fed statements, and trade developments—factors that could move sentiment dramatically.
