AUD/USD - Austrailian Dollar / US Dollar 2/27/2025Fundamental Context
The Australian dollar held its recent decline to around $0.63 on Thursday, hovering at a two-week low as US President Donald Trump’s latest tariff escalation weighed on risk sentiment. On Wednesday, Trump outlined plans for 25% “reciprocal” tariffs on European autos and other goods, while confirming that tariffs on Mexico and Canada would take effect on April 2, rather than the previously set deadline of March 4. Given Australia’s heavy reliance on exports, the currency remains vulnerable to the risks of a global trade war. Domestic data also showed an unexpected decline in private capital expenditure for the fourth quarter, fueling expectations of further interest rate cuts by the Reserve Bank of Australia. However, RBA Deputy Governor Andrew Hauser said on Thursday that the central bank would need to see more positive inflation data before considering additional rate cuts.
Technical Overview
Support Zones
First Major Support around 0.6200 – Price is currently hovering around this psychological level. A bounce here could trigger short-term recovery, but failure to hold suggests deeper downside.
Secondary Support around 0.5950–0.5910 – Historical support, providing a deeper line of defense for buyers.
Tertiary Support around 0.5650–0.5600 – A key zone visible from prior cycle lows.
Buy Limit Orders
The chart highlights staggered buy-limit levels within these support zones, suggesting a strategy to average into long positions if the Aussie continues to weaken.
BLO 1 @ 0.61939
BLO 2 @ 0.59172
BLO 3 @ 0.56378
Take-Profit Targets (TP)
TP1 @ 0.63741
TP2 @ 0.66979
TP3 @ 0.71315
