Aussie dollar stalls at range high above 0.6600
AUD/USD has soared from recent lows as the US dollar weakens, bringing the pair to a critical inflection point near 2-month highs.
The Australian Dollar rose to an eight-week high on Thursday as traders continued to buy the currency, extending a multi-week rally that has taken the currency from a multi-month low of 0.64213 on November 21 to today’s high point of 0.66236.
AUD/USD has benefited from dollar weakness and strength in Australia’s economy itself. Earlier this week, Australia reported third-quarter economic growth of 2.1% from a year before, with investment and consumer demand helping to bolster the figure despite trade being a headwind.
The data is pushing traders to bet that the Reserve Bank of Australia (RBA) may be done cutting rates for this cycle. Traders are now expecting a possible rate hike as soon as May 2026. Yields on Australian bonds are already reacting to the upside, helping to strengthen the currency.
Technically, AUD/USD looks poised for more gains. Earlier this week, prices broke trendline resistance from a downswing that started back in September. Prices have retraced over half of the move, with the 61.8% Fibonacci retracement level being breached on Wednesday.
The Aussie faces some resistance from a zone of congestion that kept prices capped from late September to early October. If bulls manage to drive prices higher, the September swing high becomes the next valid target.
However, given a 3% gain in AUD/USD since November 21, prices may need a cooling period. That said, buying a pullback is tempting, given the fundamental backing that the Aussie has and the backdrop of a struggling dollar.
AUD/USD daily price history
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