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02.04.202512:25 Forex Analysis & Reviews: AUD/USD: Analysis and Forecast

Exchange Rates 02.04.2025 analysis

Today, the AUD/USD pair is showing positive momentum, rebounding from nearly a four-week low.

Support has come from the Reserve Bank of Australia's less "dovish" stance, with the central bank stating that returning inflation to the target level is its top priority. Additionally, optimism surrounding China's economy has been a key factor contributing to the Australian dollar's gains.

According to data released on Tuesday, China's manufacturing activity in March grew at the fastest pace in a year. On top of that, a better-than-expected business activity index in China, along with recent stimulus measures aimed at supporting economic recovery, have boosted the Australian dollar, which is considered a commodity-linked currency and a China proxy.

However, risks remain tied to tariffs and the ongoing trade tensions between the U.S. and China, which could pressure the Australian dollar. Expectations of a possible RBA rate cut in May may also cap AUD/USD's upside potential.

At present, markets are pricing in a 70% chance of a rate cut by the Reserve Bank of Australia in May. Therefore, traders should proceed cautiously and await today's comments from U.S. President Donald Trump regarding reciprocal tariffs, which could significantly impact Australia's export-driven economy.

From a technical perspective, if bulls manage to hold above the 0.6300 level, this could pave the way for further upside. After breaking above the 100-day Simple Moving Average (SMA), the pair will encounter resistance at 0.6340. Clearing that level could open the door for a retest of the March high.

However, since the 14-day Exponential Moving Average (EMA) remains above the 9-day EMA, the pair may lack sufficient bullish momentum—especially considering that oscillators on the daily chart are still neutral and have yet to cross into positive territory.

Therefore, it would be wise to wait for a clear signal from the oscillators before opening directional positions.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Irina Yanina,
Analytical expert of InstaSpot
© 2007-2025
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