AUD/USD Price Outlook: Gains momentum with a break above 0.6730
AUD/USD Edges Down Amid Stronger US Dollar
During Wednesday's European session, the AUD/USD pair slipped slightly, hovering near 0.6680. The Australian Dollar is experiencing modest downward pressure as the US Dollar strengthens, despite the Federal Open Market Committee (FOMC) minutes from December indicating a preference among officials for additional interest rate reductions.
The US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, climbed to a new weekly peak around 98.35 during the session.
On Tuesday, the FOMC minutes revealed that policymakers were in favor of further monetary easing to support the labor market, following a recent 25 basis point rate cut that brought the target range to 3.50%-3.75%.
According to the minutes, most committee members believe that shifting toward a more neutral policy stance could help prevent potential weakness in employment conditions.
As 2025 approaches, the Australian Dollar remains under pressure. Looking ahead to 2026, inflation figures are expected to be a key focus for Australia. The Reserve Bank of Australia (RBA) indicated earlier this month that it may consider further rate hikes if inflation remains stubbornly high.
Technical Outlook for AUD/USD
AUD/USD is trading modestly lower near 0.6685, but the pair continues to hold above the rising 20-day Exponential Moving Average (EMA) at 0.6651, which is lending support to the uptrend. The 20-day EMA has been on an upward trajectory in recent sessions.
The 14-day Relative Strength Index (RSI) stands at a positive 61, signaling ongoing bullish momentum without indicating overbought conditions.
The outlook remains positive as long as the pair closes above the ascending average, with any pullbacks likely to be seen as corrections within the broader uptrend. A daily close above the December 29 high of 0.6725 could pave the way for a move toward the psychological level of 0.6800.
(This technical analysis was prepared with the assistance of AI tools.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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