The Australian Greenback (AUD) extends its advance in opposition to the US Greenback (USD) on Friday, with AUD/USD climbing to its highest degree since September 18 as merchants are virtually sure the Reserve Financial institution of Australia (RBA) will depart rates of interest unchanged on December 9.
On the time of writing, AUD/USD is buying and selling round 0.6637, on monitor for a second straight weekly achieve.
The elemental backdrop stays supportive for the Aussie, with markets additionally starting to issue within the chance that the RBA might revisit tightening subsequent 12 months if home situations keep agency.
This stands in sharp distinction to the Federal Reserve’s (Fed) dovish outlook, which continues to weigh on the US Greenback and additional helps AUD/USD.
From a technical perspective, the day by day chart reveals a robust breakout above a descending parallel channel earlier this week, signalling a transparent shift towards a bullish construction.
The transfer greater has additionally pushed AUD/USD above the 21-day, 50-day and 100-day Easy Shifting Averages (SMAs), which are actually clustered close to the higher boundary of the previous channel, making a stable help confluence within the 0.6550-0.6520 area within the occasion of a pullback.
So long as costs maintain above this zone, the broader bias is anticipated to stay in favor of the bulls, whereas a break under it will threat a deeper correction and weaken the near-term outlook.
On the upside, 0.6650 is performing because the fast resistance. A decisive shut above this space would open the door towards this 12 months’s peak at 0.6707, marked on September 17, which additionally stands because the year-to-date excessive and the very best degree since October 2024. Past that, the psychological 0.6800 mark turns into the subsequent bullish goal if momentum continues to construct.
Momentum indicators reinforce the bettering tone. The Relative Energy Index (RSI) is holding close to 68, approaching overbought territory however nonetheless reflecting agency upward momentum. In the meantime, the Common Directional Index (ADX) has climbed towards 19, signalling that development energy is starting to get well after a subdued interval.
Financial Indicator
RBA Curiosity Price Choice
The Reserve Financial institution of Australia (RBA) proclaims its rate of interest determination on the finish of its eight scheduled conferences per 12 months. If the RBA is hawkish concerning the inflationary outlook of the financial system and raises rates of interest it’s often bullish for the Australian Greenback (AUD). Likewise, if the RBA has a dovish view on the Australian financial system and retains rates of interest unchanged, or cuts them, it’s seen as bearish for AUD.
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