The Australian Dollar is showing an upward trend, but it seems unlikely to reach significant resistance at 0.6555 due to weak momentum. Currently, the currency is expected to trade between 0.6450 and 0.6555. In the last 24 hours, the AUD peaked at 0.6541, exceeding expectations, before dipping and closing at 0.6524. Although the momentum is weak, today’s trend appears to be upward, with resistance at 0.6540 and support at 0.6510.

Neutral Outlook Analysis

Over the next one to three weeks, we maintain a neutral outlook. The currency is predicted to continue trading between 0.6450 and 0.6555. This analysis comes with inherent risks and uncertainties. This information is for educational purposes only and does not offer buy or sell advice. It’s crucial to conduct thorough research before making any financial decisions, as investing can be risky and may lead to partial or total losses. With expectations that the Australian dollar will stay within this range, traders focusing on derivatives can find opportunities in low volatility strategies. A good approach is to operate between 0.6450 and 0.6555. Selling options for premium collection may be a smart strategy for the upcoming weeks.

Economic Data and Trading Strategies

Our perspective is enhanced by recent economic data. China’s manufacturing PMI for July 2025 was reported at 50.1, indicating steady conditions without strong growth. Additionally, the Reserve Bank of Australia has indicated a pause on interest rate changes, similar to the cautious approach of the U.S. Federal Reserve. These elements reduce the chances of a significant price shift in the AUD/USD pair. Looking back to the latter half of 2023, we saw a similar market when central banks held their policies steady. The AUD/USD traded within a narrow range for several months, benefiting traders who anticipated minimal price changes. Such consolidation can continue until a new factor prompts a change. Therefore, traders should consider strategies that take advantage of this sideways movement, such as an iron condor. This strategy involves selling out-of-the-money call options with a strike price above 0.6555 and selling put options with a strike below 0.6450. The main risk would come from an unexpected inflation report from Australia or the U.S. that could prompt a central bank to adjust its policies. Create your live VT Markets account and start trading now.

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