The Australian Dollar (AUD) is predicted to retest the 0.6680 level before any potential recovery. Analysts suggest that further declines may not reach 0.6655. Current market movements indicate a range-trading phase between 0.6655 and 0.6745 over the longer term.<\/p>\n
In a 24-hour view, the AUD displayed a decline to 0.6682, contrary to the anticipated consolidation between 0.6705 and 0.6745. Despite this decrease, the downward momentum only slightly increased. It is suggested that AUD might retest the 0.6680 level again before recovering. Resistance levels are projected at 0.6715 and 0.6730. <\/p>\n
In a one-to-three weeks’ view, recent fluctuations saw AUD rising to 0.6766 before pulling back. While upward momentum has eased, the outlook remains, provided the AUD stays above 0.6690. A slip below this level to 0.6682 was observed. The momentum buildup has weakened, contributing to the current range-trading phase between 0.6655 and 0.6745. These observations are provided by various market experts assembled by the FXStreet Insights Team.<\/p>\n
Looking back a year ago, in early January 2025, we saw the Australian dollar consolidating. The view at the time was that after a pullback, the AUD\/USD was entering a range-trading phase, likely holding between 0.6655 and 0.6745. This perspective was based on fading upward momentum after the pair failed to decisively break higher.<\/p>\n
That range-bound view from 2025 proved accurate for a period, before stronger-than-expected commodity prices later in the year pushed the pair higher. Now, in January 2026, the situation is different, with the pair trading significantly higher near 0.6950. Recent data shows Australian inflation, while easing, remains persistent at 3.1%, keeping the Reserve Bank of Australia from signaling any rate cuts.<\/p>\n
This contrasts with the United States, where a mixed jobs report last week has reinforced the view that the Federal Reserve will remain on hold. With the US dollar showing signs of softening, we see a new, higher range forming for the Aussie dollar. For the coming weeks, a range between 0.6880 and 0.7000 seems likely.<\/p>\n
For derivative traders, this environment of lower implied volatility is well-suited for income-generating strategies. Selling an iron condor with short strikes around 0.6900 and 0.7000 could be a viable strategy to capitalize on this expected range. This approach profits from the passage of time as long as the AUD\/USD pair remains between the sold strike prices.<\/p>\n
Alternatively, for those with a slightly bullish bias, a bull call spread could be implemented to limit risk. One might consider buying a 0.6950 strike call and selling a 0.7000 strike call for the February expiration. This defines the risk while targeting a modest move higher, driven by stable iron ore prices which recently averaged over $130 per tonne.<\/p>\n
Key risks to these positions will be next week\u2019s US inflation data and any unexpected hawkish language from Fed officials. A surprise jump in US CPI could quickly strengthen the dollar and push the AUD\/USD down through the bottom of our expected range. Therefore, monitoring these key economic releases is essential for managing risk.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" AUD may retest 0.6680; range-bound trading expected between 0.6655 and 0.6745 in near term.<\/p>\n","protected":false},"author":62,"featured_media":16963,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-38726","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\/38726","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=38726"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38726\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16963"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=38726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=38726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=38726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}