The Australian Dollar extended its rally against the US Dollar on Friday, with AUD/USD hitting its strongest level since September 18 as markets grow increasingly confident that the Reserve Bank of Australia will keep rates unchanged on December 9. At the time of writing, the pair trades near 0.6637, set to log a second consecutive weekly gain.
The macro backdrop remains supportive for the Aussie. Traders are gradually pricing in the possibility of renewed RBA tightening in 2025 should domestic conditions remain resilient — a stance that contrasts sharply with the Federal Reserve’s dovish tilt, which continues to drag on the US Dollar and bolster AUD/USD.
Technical outlook: breakout signals bullish momentum
AUD/USD broke decisively above a descending parallel channel earlier this week, marking a clear shift toward a bullish technical structure. The upside move also carried the pair above the 21-day, 50-day, and 100-day SMAs, now clustered around the former channel’s upper boundary. This creates a strong support confluence in the 0.6550–0.6520 region should a pullback occur.
Holding above this zone keeps the broader bias pointed higher, while a downside break would raise the risk of a deeper correction and dampen the near-term outlook.
Upside levels in focus as momentum strengthens
Initial resistance sits at 0.6650. A daily close above this level would pave the way toward this year’s high at 0.6707, set on September 17 – also the highest level since October 2024. Beyond that, the psychological 0.6800 mark becomes the next bullish milestone if momentum continues to build.
Momentum indicators support the constructive view. The RSI is hovering near 68, approaching overbought conditions yet still signaling solid upward momentum. The ADX has firmed toward 19, suggesting trend strength is beginning to recover after a muted stretch.
