Insights 
VT 
The AUD/USD is expected to trade between 0.6570 and 0.6605, with potential for a downturn. The likelihood of AUD breaking below 0.6555 is increasing, as noted by FX analysts, Quek Ser Leang and Peter Chia.
In the last 24 hours, AUD dipped to 0.6557 before settling at 0.6586, showing minimal changes. This movement suggests continued sideways trading within the 0.6570 to 0.6605 range.
Downward Momentum
Over the past weeks, analysts have noted that recent trends suggest increased downward momentum. The key resistance level remains at 0.6630, critical for maintaining predictions if it remains intact.
Various foreign exchange market updates are provided by FXStreet, although no personal investment advice is offered. Recent developments include the Euro trimming losses against the Swiss Franc, and the GBP/JPY slipping after a four-day rally.
Meanwhile, plans for a steady stance in the Eurozone have been reaffirmed by the ECB. GBP/USD has seen declines to three-week troughs, while Gold is holding near record highs. Lastly, the cryptocurrency market faces profit-taking and risk-off sentiment.
Sideways Phase Strategy
Current price action suggests we are in a sideways phase, likely contained between 0.6570 and 0.6605. For traders looking to capitalize on this low volatility, strategies like selling an options strangle with strikes outside this range could be considered. This approach profits from the currency pair remaining stable in the immediate term.
However, the odds of the AUD breaking below the key 0.6555 support level are growing for the coming weeks. We believe positioning for this potential drop by purchasing put options with a strike price around 0.6550 could be a prudent move. This provides downside exposure while limiting risk to the premium paid.
This bearish view is supported by diverging central bank policies. The latest Australian CPI data for September 2025 showed inflation cooling to 3.2%, increasing bets the Reserve Bank of Australia will hold rates, while last week’s strong U.S. jobs report keeps the Federal Reserve on a hawkish path. This interest rate difference naturally favors the US dollar.
External pressures are also weighing on the Aussie dollar. We’ve seen iron ore prices, a vital Australian export, slip to $98 per tonne amid ongoing weakness in China’s construction sector. This follows the pattern from 2023 and 2024 where concerns over Chinese demand consistently capped AUD strength.
A bear put spread could also be an effective strategy to target a move lower with a defined risk. We see the 0.6630 level as a strong resistance, and as long as the price remains below it, our downward bias holds. A failure to break above this ceiling in the next week would reinforce the potential for a test of the 0.6555 support.
