AUD/USD Price Forecast: Turns upside down after facing selling pressure above 0.7100

Australian Dollar Price Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the Japanese Yen.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.26%	-0.19%	-0.37%	-0.09%	0.16%	-0.11%	-0.30%
EUR	0.26%		0.07%	-0.15%	0.18%	0.42%	0.18%	-0.04%
GBP	0.19%	-0.07%		-0.19%	0.10%	0.35%	0.09%	-0.11%
JPY	0.37%	0.15%	0.19%		0.31%	0.56%	0.29%	0.10%
CAD	0.09%	-0.18%	-0.10%	-0.31%		0.25%	-0.02%	-0.23%
AUD	-0.16%	-0.42%	-0.35%	-0.56%	-0.25%		-0.27%	-0.46%
NZD	0.11%	-0.18%	-0.09%	-0.29%	0.02%	0.27%		-0.20%
CHF	0.30%	0.04%	0.11%	-0.10%	0.23%	0.46%	0.20%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

Though the US Dollar (USD) trades higher against the Australian Dollar, the former is underperforming its other peers amid renewed United States (US) trade policy uncertainty.

During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.3% lower to near 97.50.

On Friday, the US Supreme Court accused President Donald Trump of overstepping his authority by invoking rights under the International Emergency Economic Powers Act (IEEPA) to back wide-ranging tariffs, and invalidated additional import duties.

In response, US President Trump has announced 15% global tariffs to keep import duty pressures on trading partners intact.

AUD/USD technical analysis

AUD/USD trades in a limited range between 0.7045 and 0.7100 for over a week. The 20-day Exponential Moving Average (EMA) at 0.7015 rises, and the price holds above it, supporting a short-term bullish bias.

The 14-day Relative Strength Index (RSI) has remained in the 40.00-60.00 range, indicating that momentum continues to favor Aussie bulls.

If momentum strengthens and RSI resumes its upside moves, bulls could extend the advance towards the February 12 high of 0.7147. A dip of RSI into the 40.00-60.00 range would caution of consolidation and a loss of near-term impetus.

(The technical analysis of this story was written with the help of an AI tool.)

US Dollar FAQs

What is the US Dollar?

The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.

How do the decisions of the Federal Reserve impact the US Dollar?

The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.

What is Quantitative Easing and how does it influence the US Dollar?

In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.

What is Quantitative Tightening and how does it influence the US Dollar?

Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.