Australian Dollar Ready Despite Pressure: Uptrend Could Continue if It Breaks 0.6730

2026-01-12 08:18:49

The Presence of the US Dollar Hinders the Uptrend of AUD/USD

In recent trading sessions in Europe, the Australian dollar/US dollar pair (AUD/USD) is consolidating around 0.6685. Despite increasing pressure from the US dollar, AUD/USD still shows resilience thanks to several key supporting factors.

The Dollar Index (Dollar Index) has reached a new weekly high around 98.35, reflecting a “flight to safety” amid strong US dollar pressure in the context of global uncertainty. However, according to the December FOMC meeting minutes just released, Fed officials are leaning toward continuing monetary easing. The most recent meeting indicated that committee members believe maintaining a more neutral policy stance will help protect the labor market from recession risks.

Technical Signals Indicate Australian Dollar Still Has Recovery Potential

From a technical perspective, although AUD/USD is trading under slight pressure, indicators have provided promising signals. The 20-day EMA is maintaining an upward trend at 0.6651, serving as an important support level to preserve the momentum of this pair.

The 14-day RSI indicator is currently at 61, still in positive territory but not yet overbought (>70), suggesting there is still room for the Australian dollar to continue appreciating. As long as AUD/USD remains above the rising 20-day EMA, any pullback can be viewed as a retracement within the larger uptrend.

Price Targets and Future Scenarios

If AUD/USD can close above the recent high from December 29 (at 0.6725), the next target will be the psychological level of 0.6800. This is not only a technical resistance level but also marks an important psychological turning point in market sentiment.

In Australia, the Reserve Bank of Australia (RBA) has clearly stated its stance, indicating they do not rule out raising interest rates if inflation remains high. This could serve as a long-term catalyst supporting the Australian dollar, especially as 2026 approaches and inflation data becomes a market focus.

(This analysis is conducted with the support of modern analytical tools.)

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.