News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
AUD/USD Rebounds as Geopolitical Calm and Weaker U.S. Dollar Drive Risk-On Mood
Economic
Summary:
The Australian Dollar surged on Monday, lifted by improving investor risk appetite and a softening U.S. Dollar, as market fears of a broader Middle East conflict subsided.
Buy
TradingAUDUSD
EXP
0.65498
Entry Price
0.66250
TP
0.64800
SL
0.65304 +0.00080 +0.12%
0
Point
Flat
0.64800
SL
CLOSING
0.65498
Entry Price
0.66250
TP
The Australian Dollar regained its footing on Monday, climbing firmly above the 0.6500 level as traders responded to an improved market mood and signs of diminishing geopolitical risk in the Middle East. AUD/USD rose by around 0.45% intraday, making the Aussie one of the top-performing G10 currencies, underpinned by a combination of risk-on sentiment and a weakening U.S. Dollar.
The sharp rebound in the Aussie followed several days of market anxiety driven by escalating tensions between Iran and Israel. Although the two nations continued to exchange fire for a fourth consecutive day, global markets took solace in the absence of further escalation. Crucially, Iran has not moved to close the Strait of Hormuz—a strategic chokepoint for global oil flows. That development alone eased fears of a broader regional conflict that could have forced the U.S. to become militarily involved, which would have triggered a significant flight to safety.
Investor relief was further supported by efforts from multiple global powers to de-escalate the crisis. China and Russia have both offered to mediate, and former U.S. President Donald Trump is reportedly pressuring both countries to reach a ceasefire. While these diplomatic overtures remain in early stages, they have helped to pull risk assets, including the Australian Dollar, off recent lows.
Still, the geopolitical backdrop remains fragile. Iran's Foreign Ministry revealed that the national parliament is preparing a bill to withdraw from the Nuclear Non-Proliferation Treaty, a move that would significantly escalate tensions with the West. Despite this development, traders appear to be discounting its immediate market impact, focusing instead on the relative calm in the Strait of Hormuz and the absence of further military escalation.
Beyond geopolitics, data from China presented a mixed picture. On the one hand, headline consumer inflation came in above expectations, indicating that domestic consumption may be recovering in Australia’s largest trading partner. That’s typically a bullish signal for the Aussie, which is highly sensitive to China’s demand dynamics. However, industrial production figures disappointed, falling short of expectations and suggesting that China’s recovery remains uneven. This mixed macroeconomic backdrop limited the degree of fundamental support for AUD/USD, though it was not enough to derail the broader upward move.
Meanwhile, the U.S. Dollar continued to retreat across the board, weighed down by declining Treasury yields and softer expectations for the Federal Reserve’s policy path. With markets still digesting last week’s mixed U.S. inflation data and weighing the odds of a September rate cut, the greenback has struggled to regain traction. In the absence of new hawkish signals from the Fed, high-beta currencies like the Australian Dollar have found room to appreciate.
Technical Analysis
From a technical perspective, the AUD/USD pair is exhibiting a clear bullish structure, characterized by higher highs and higher lows. Monday’s advance marks a continuation of that trend, and current price action suggests the pair may be forming a bullish consolidation pattern above the 0.6500 level. This setup typically precedes further upward extension if near-term support levels hold.
The immediate support sits around 0.6465, a level that previously acted as a consolidation base. A dip toward this zone could attract renewed buying interest and reinforce the uptrend. If the pair manages to sustain momentum above this level, it may retest resistance areas around 0.6570 and 0.6590, with a possible extension toward 0.6625 in the coming sessions. However, a daily close below 0.6465 would challenge the bullish thesis and could spark a deeper pullback, shifting near-term sentiment toward a more neutral or even bearish tone, with targets near 0.6445 and 0.6400.
TRADE RECOMMENDATION
BUY AUDUSD
ENTRY PRICE: 0.6550
STOP LOSS: 0.6480
TAKE PROFIT: 0.6625
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2025 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.