AUD/USD attracted fresh dip-buying during Tuesday’s Asian session, halting Monday’s modest pullback from a near three-week high. The pair is trading in the mid-0.6500s, up more than 0.10% on the day, and looks positioned to extend its steady rebound from last month’s lowest level since August 22.
Aussie supported by hawkish RBA tone
The Australian Dollar (AUD) remains supported as markets scale back expectations for additional Reserve Bank of Australia (RBA) easing. Meanwhile, the US Dollar (USD) stays on the defensive amid rising bets that the Federal Reserve (Fed) will deliver another rate cut this month. A broadly positive risk tone is also weighing on the Greenback’s safe-haven appeal and favoring the risk-sensitive Aussie.
Technical outlook: bullish momentum building
AUD/USD is holding comfortably above the 100-day Simple Moving Average (SMA) and attempting to build momentum beyond a descending trendline drawn from the September swing high. Oscillators on the daily chart have begun to turn higher, reinforcing the constructive setup and supporting the case for a move toward the 0.6600 handle.
A sustained break above 0.6600 would open the path toward the next resistance zone at 0.6660–0.6665. Continued strength could extend into a test of the year-to-date high – just above 0.6700 – reached in September.
On the downside, immediate support sits at 0.6535, aligned with the 100-day SMA. Below that, the 0.6500 psychological level becomes the next key floor. A decisive break under 0.6500 would bring the 200-day SMA near 0.6465 into focus. Failure to defend this zone could shift the short-term bias back in favor of sellers.
