AUD/USD Forecast: Australian Dollar Advances as Inflation Risks and Weak US Dollar Support the Move
The Aussie dollar (AUD/USD) climbed near 0.6540, rising on growing inflation concerns in Australia and a softer US dollar tone. The pair is trading close to its nine-day moving average, showing continued short-term strength.
Australia’s inflation risks remain persistent, keeping the Reserve Bank of Australia (RBA) alert. There’s still room for more domestic inflation, even as monthly figures have eased. This supports the Aussie, as traders view it as less likely to see sharp rate cuts. Meanwhile, data from the US dollar side shows weakness, with expectations that trade and tariff issues are weighing on it.
Technically, AUD/USD is drifting within an upward channel. A rise above the recent eight-month high at 0.6590 could push the pair toward 0.6680. On the flip side, a dip below the nine-day EMA near 0.6538 might open the door to 0.6510 and the 50-day EMA around 0.6478, signaling possible weakness.
Overall, AUD USD forecast edges bullish with Australia’s inflation outlook mixed and the US dollar subdued.
Impact :
The Aussie might continue its rise if inflation stays persistent and the US dollar remains weak. But a pullback is possible if AUD drops below the nine‑day EMA.