The Australian Dollar (AUD) is expected to trade between 0.6510 and 0.6535. Over a longer period, prices are predicted to move between 0.6470 and 0.6555. In a 24-hour window, the price fluctuated tightly between 0.6513 and 0.6535, closing slightly higher at 0.6525, which is a 0.02% increase. Today’s trading range remains 0.6510 to 0.6535.

Trading Range Outlook

In the next one to three weeks, the AUD is likely to stay within a range of 0.6450 to 0.6555, with a more focused range of 0.6470 to 0.6555 enough to capture its price movements. This information regarding currency and market instruments carries risks and uncertainties. It is intended for informational purposes only and should not be considered as investment advice. Always do your own research before making any financial decisions, as open market investments can lead to significant risks, including a total loss of principal. Individuals are responsible for all investment risks, losses, and costs. Given that the Australian dollar is expected to remain within a 0.6470 to 0.6555 range for the coming weeks, making directional bets may not be profitable. Recent economic data backs this up, showing the Australian CPI at 3.1% in late July 2025. This figure keeps the Reserve Bank of Australia in a holding pattern, mirroring the cautious stance of the US Federal Reserve from its July meeting, which limits currency volatility.

Market Conditions and Strategies

The chances for a significant upward breakout seem limited for now. Key commodity prices are still weak, as iron ore struggles to stay above $105 per tonne due to low demand. China’s latest manufacturing PMI for July 2025 is 50.1, suggesting its economy isn’t yet robust enough to significantly boost the Aussie dollar. For traders dealing with derivatives, selling volatility might be a smart strategy in this environment. Using techniques like an iron condor—with short strikes outside the 0.6470 and 0.6555 limits—can help collect premium. The main goal here is to profit from time decay as the AUD/USD pair remains within this expected range. This behavior mirrors what we saw in 2024 when the AUD/USD remained between 0.6400 and 0.6650 for months. Traders who focused on range-bound strategies during that time were more successful than those hoping for a breakout. However, we must be aware of the risks that could disrupt this outlook. A surprisingly high inflation rate or unexpected employment data from Australia or the US could break the current stability and push prices out of their range. This underscores the importance of defined-risk strategies to guard against sudden spikes in volatility. Create your live VT Markets account and start trading now.

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