The AUD\/USD has increased after surpassing the 200-day moving average and breaking a long-term descending trend line. The pair is moving towards a resistance zone of 0.6685-0.6710.<\/p>\n
If there is a short-term decline, the area near 0.6410 would serve as support. Surpassing the 0.6685-0.6710 zone could lead to further upward movement towards 0.6800, and potentially reaching 0.6870-0.6940, levels seen in June 2023 and projected for 2024.<\/p>\n
The AUD\/USD has extended its move up after clearing a descending trend line that has been in place since 2021. We have also crossed the 200-day moving average, confirming the bullish momentum. The pair is now targeting the resistance zone from September’s high near 0.6685\/0.6710.<\/p>\n
This technical strength is underpinned by fundamental factors, as Australia\u2019s third-quarter 2025 inflation report came in higher than expected at 3.2%, keeping pressure on the RBA. In contrast, the latest U.S. non-farm payrolls data from November 2025 showed a cooling labor market, increasing bets that the Federal Reserve will consider rate cuts in 2026. This policy divergence strongly favors a higher Australian dollar.<\/p>\n
Given this outlook, we are considering buying call options with strike prices just above the 0.6710 level to profit from a potential breakout. A break of this resistance could see a rapid move towards the next projection at 0.6800. The relatively low options volatility we saw through November 2025 makes this an attractive strategy.<\/p>\n
Should this resistance at 0.6710 hold, a short-term pullback could offer a better entry point, with key support identified near the recent low of 0.6410. A cautious approach could involve using bull call spreads to limit the initial cost and define risk. This would involve buying a call option and simultaneously selling another call at a higher strike price, such as the 0.6870 level which marked a high back in June 2023.<\/p>\n
Further confidence in this upward trend comes from the recent strength in commodity markets, with iron ore prices up nearly 10% since October on stronger demand forecasts. We saw a similar dynamic in late 2020, where a breakout in the Aussie dollar followed a sharp recovery in commodity prices. If that historical pattern repeats, the current rally could extend towards the highs seen in mid-2024 near 0.6940.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" AUD\/USD breaks trend, eyes 0.6685\u20130.6710 resistance; support at 0.6410; upside targets near 0.6870\u20130.6940.<\/p>\n","protected":false},"author":62,"featured_media":16959,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-36263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=36263"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36263\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16959"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=36263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=36263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=36263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}