With the USD weakening, the AUDUSD pair may continue its upward trajectory towards 0.6580. Discover more in our analysis for 29 August 2025.
AUDUSD forecast: key trading points
- The AUD continues to strengthen against the USD
- The Australian PMI and retail sales support the Aussie
- AUDUSD forecast for 29 August 2025: 0.6580
Fundamental analysis
Today’s AUDUSD forecast favors the Australian dollar, which continues to recover against the USD, with the pair currently trading near 0.6530. The weakness in the USD is driven by rising expectations of a Fed rate cut in September and political risks surrounding the US central bank. This has created a favorable backdrop for the Aussie’s growth and boosted the chances of a continued uptrend.
Australian macroeconomic data also keeps the AUD supported. Inflation accelerated to 2.8% in July, lowering the likelihood of an RBA rate cut. Against this backdrop, the Australian dollar strengthened before entering a correction. The AUDUSD outlook also considers the positive impact of PMI and retail sales data, which sustain domestic optimism and reinforce AUD’s gains against the USD.
AUDUSD technical analysis
Having tested the lower Bollinger Band, the AUDUSD pair formed a Hammer reversal pattern on the H4 chart. At this stage, the pair is developing an upward wave in line with the signal, with the 0.6580 resistance level as an upside target.
The AUDUSD forecast also considers an alternative scenario. Given that the pair formed corrective waves in previous trading sessions, another pullback to the nearest support level at 0.6510 is possible before growth resumes.
Summary
Amid Fed turmoil and Australia’s stronger economic outlook, the AUD continues to gain ground. AUDUSD technical analysis suggests growth towards the 0.6580 resistance level.
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