The Australian Dollar is expected to range-trade between 0.6670 and 0.6710, as a possible range-trading phase emerges between 0.6655 and 0.6745, according to analysts from UOB Group. After a minor dip to 0.6682, the currency briefly fell to 0.6664 before closing at 0.6687, indicating that downward momentum is diminishing.
In the one-to-three-week forecast, the expectation is for the Australian Dollar’s movements to remain within the 0.6655 to 0.6745 range. There is an increasing chance of the currency dipping below 0.6650 before reaching 0.6745, given the current softening tone. This analysis was brought together by the FXStreet Insights Team, highlighting market observations and insights from both internal and external analysts.
Expected Trading Range
For the next few weeks, we see the Australian Dollar being confined to a trading range. Expect price action to stay largely between 0.6655 on the low end and 0.6745 on the high end. This view is a continuation of what we observed developing early last year, around January 2025.
Although we expect a range, the underlying tone feels soft, with a greater risk of breaking below the 0.6655 support level. The recent US jobs report, which showed a robust addition of over 200,000 jobs in December 2025, continues to strengthen the US dollar. This makes an aggressive move higher in the AUD/USD less likely for now.
On the other side, a complete collapse seems unlikely as factors in Australia provide a floor of support. Australia’s Q4 2025 inflation data came in at a persistent 3.8%, which limits the central bank’s ability to cut interest rates. Additionally, key commodity prices like iron ore are holding steady above $135 per tonne, helping to prop up the currency.
Trading Strategies
Given this expectation of limited movement, traders could consider strategies that profit from low volatility, like selling out-of-the-money call and put options. An options seller might target strikes around the 0.6750 level for calls and below the 0.6650 level for puts. This approach benefits from the price remaining within the established channel over the next few weeks.
