The Australian Dollar (AUD) is expected to stay between the range of 0.6430 and 0.6495. If it goes above 0.6520, it’s unlikely to drop below 0.6405. In the last trading session, the AUD reached 0.6493, fell to 0.6438, and closed at 0.6465, marking a gain of 0.79%. Today, we anticipate it will trade between 0.6430 and 0.6495. Looking ahead, previous forecasts suggested the AUD could dip below 0.6405 and test the June low of 0.6375. Recently, the AUD went down to 0.6419 but then climbed back to 0.6493, showing that its downward momentum is slowing. All information in this article includes forward-looking statements that come with risks and uncertainties. This content is for informational purposes only and is not a financial recommendation. It’s important to research thoroughly before making investment decisions, as there are risks involved, including total loss of investment and emotional stress. Recent activity in the Aussie dollar shows a struggle between upward and downward movements. The downward pressure is easing, partly due to better-than-expected Chinese manufacturing data of 50.8. However, a strong US jobs report from last Friday is keeping the US dollar strong, keeping the AUD in a tight range. This indicates that a sideways trading strategy may work for now. With the AUD likely stuck between 0.6430 and 0.6495, traders should consider strategies that benefit from low volatility and time decay. This approach works as long as the AUD remains within this range. We should be ready for a breakout from this consolidation. A significant move above 0.6520 could lead to a new upward trend, while dropping below 0.6405 would bring attention back to the June low of 0.6375. These levels are key indicators to watch for a potential shift in strategy. We recall a similar pattern in the Aussie dollar in the second half of 2023, which was followed by a sharp breakout. August often has lower trading volumes, which may lead to larger movements based on minor news. This history reminds us to manage risk carefully and stay alert during quieter periods. Looking forward, Australia’s upcoming monthly inflation data will likely be a major driver. Any unexpected results, especially after the Reserve Bank of Australia kept rates steady on August 1st, could easily break the current range. We will also pay close attention to speeches from US Federal Reserve officials for hints about their next actions.

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