The Aussie dollar has had a turbulent last few weeks alongside every other financial product in the market as President Trump’s tariff calls and the back turns have led to excessive volatility. The Aussie is now trading back close to its monthly highs having dipped over 7% on tariff concerns, only to then rally back nearly as far on…….. more tariff concerns.
There is no doubt that geopolitical updates will continue to dominate market flows over the next few weeks as the market looks for certainty on tariffs and assesses their impact on global trade. The Aussie looks set to trade inline with its risk proxy status but will also be dominated by USD flows for the major pair.
The Aussie is now sitting just below trendline resistance on the Hourly chart which comes in around 0.6356, just below the annual high at 0.6388. A break above these key levels, either as a risk move or on the back of more dollar weakening should open the way for a swift move up to 6 cents and longer-term resistance just under 68 cents. Conversely a ‘risk off’ dynamic or an overall stronger dollar move should see if move back into recent ranges with initial support coming in at 0.6161 on the 200-Day Moving Average.
Resistance 2: 0.6388 – 2025 High
Resistance 1: 0.6356 – Trendline Resistance
Support 1: 0.6161 – 200 Day Moving Average
Support 2: 0.5912 – Trendline Support and 2025 Low
