The AUD/USD chart is chaotic, but insights on bias, risks, and targets are offered.
by VT Markets
/
Aug 8, 2025
The AUDUSD chart looks messy as we enter the new trading week. Despite this confusion, some indicators can help traders understand market trends, risks, and set targets.
Engaging With Indicators
Using these indicators can provide a better view of the market. The video analysis shared here offers insights into the market trends for the upcoming week.
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Right now, the AUD/USD chart shows a market struggling in two directions. The Reserve Bank of Australia (RBA) is signaling that its battle with inflation is ongoing, while the US Federal Reserve is committed to maintaining interest rates. This difference in central bank actions is causing market volatility.
Looking at recent data, Australia’s quarterly CPI came in at 3.8%, slightly higher than expected, which creates uncertainty about the RBA’s future decisions. Additionally, iron ore prices have dropped below $105 a tonne this month, raising concerns about demand from China and putting pressure on the Australian dollar.
In the US, last week’s Non-Farm Payrolls report showed a strong addition of 210,000 jobs, leading to delayed expectations for a Fed rate cut. This strength is keeping the US dollar stable, making it an attractive option for traders.
Opportunities and Key Levels
In this volatile market, derivative traders have a chance to sell volatility. Strategies like short strangles or straddles can be profitable if the AUD/USD pair stays within a set range. The uncertainty mirrors what we observed in late 2023, causing option premiums to rise.
Key levels to watch are support around 0.6400 and resistance near 0.6650. These levels have confined most price movements over the past two months. If the price breaks through this range, selling options may become less appealing.
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by VT Markets
Aug 8, 2025
Insights 
VT 
