The Australian Dollar (AUD) is currently experiencing a downside trend, but it is unlikely that it will reach the major support level of 0.6655. UOB Group’s analysts suggest that the currency is entering a range-trading phase, fluctuating between 0.6655 and 0.6745.<\/p>\n
In the past 24 hours, the AUD was expected to test the 0.6670 mark but demonstrated limited downward momentum. As the AUD rose to 0.6702 and dipped to 0.6673, it closed nearly unchanged at 0.6683, a minimal increase of +0.02%. Today’s support levels are at 0.6665, with resistance at 0.6690 and 0.6705; the major support is not anticipated to be tested.<\/p>\n
Over the next one to three weeks, the AUD\u2019s trading is predicted to remain in a range between 0.6655 and 0.6745. Recent trading has been relatively quiet, supporting the expectation of continued range-bound movements in the near term. Journalists from the FXStreet Insights Team select market observations from experts, incorporating external and internal analytical insights.<\/p>\n
Looking back at our analysis from this time last year, in January 2025, we expected the Australian dollar to be range-bound. The view was that AUD\/USD would trade quietly between 0.6655 and 0.6745. For a few months, this perspective held true, but conditions changed significantly in the latter half of the year.<\/p>\n
The anticipated range broke down decisively as the US Federal Reserve maintained a hawkish stance due to persistent inflation, which we saw hovering around 3.2% in the final quarter of 2025. This rate divergence with the Reserve Bank of Australia, which pivoted to a more neutral policy stance, put sustained pressure on the pair. The strength of the US dollar became the dominant theme, pushing the Aussie lower.<\/p>\n
Furthermore, economic data from China, a key partner for Australia, was weaker than expected. Manufacturing PMI figures from late 2025 consistently struggled, dipping to 49.5 and signaling a contraction that weighed on commodity prices. This backdrop provided little support for the Australian dollar, and the major support level at 0.6655 was breached in September.<\/p>\n
Today, we see that old support level of 0.6655 has now become a significant resistance point. The currency pair has since established a new, lower trading range, with the market currently finding footing near 0.6500. Our focus has shifted from range-trading strategies to recognizing this bearish trend.<\/p>\n
For the coming weeks, derivative traders should consider strategies that benefit from this new reality. Selling call spreads with a ceiling around the 0.6650 resistance level could be an effective way to capitalize on the unlikelihood of a return to the old range. This strategy allows for profit if the pair stays below this key technical point.<\/p>\n
Alternatively, for those anticipating further weakness, buying put spreads could offer a defined-risk way to position for a move towards the 0.6450 level. Given the fundamental headwinds, we see rallies as selling opportunities rather than the start of a new uptrend. Volatility has picked up since the range broke, so pricing options should be done with care.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" AUD enters range-trading phase between 0.6655 and 0.6745, with limited momentum and stable movement.<\/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-39254","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\/39254","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=39254"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39254\/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=39254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=39254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=39254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}