Aussie dollar extends rally as AUD/USD breaks 0.6635; bulls target 0.6660–0.6700
AUD/USD pushed higher in Friday trading, clearing a well-watched resistance band at 0.6625–0.6635. The breakout keeps momentum with the bulls, with traders eyeing 0.6659 next and a run toward the late‑Q3 highs if follow-through holds.
Market overview
The Australian dollar is outperforming on the week, up about 1.44%, with a further 0.45% gain intraday. The move has been driven by clean, technical buying after price pierced a multi-month swing zone traced back to late July. While broader dollar direction and rate expectations remain in flux, price action suggests dip buyers are in control above the breakout band.
Technical picture
AUD/USD has advanced through the 0.6625–0.6635 swing area. Holding above this shelf keeps the bias constructive in the near term. A decisive close back below the zone would risk a false-break reversal and likely flush late longs.
On the topside, traders are watching:
– Initial resistance at 0.6659
– September highs clustered at 0.6688–0.6706
Momentum remains favorable while price sustains above the reclaimed band, with intraday volatility likely to track shifts in U.S. yields and broad risk appetite.
Key points
- AUD/USD up ~1.44% on the week; ~0.45% today
- Breakout above the 0.6625–0.6635 swing area keeps buyers in control
- Immediate upside marker at 0.6659; then 0.6688–0.6706
- Failure back below 0.6625 would undercut the bullish setup
- Price action likely to respond to U.S. yields, risk sentiment, and RBA/Fed signals
What could move AUD/USD next
– U.S. rates and dollar tone: A drift lower in Treasury yields typically supports high-beta FX, while a spike could cap the Aussie.
– Risk appetite and equities: Improved global equity sentiment tends to lift AUD via carry and pro‑cyclical flows.
– China and commodities: Shifts in China growth signals and bulk commodity prices can influence the Aussie’s macro bid.
– Central bank rhetoric: Any recalibration of RBA or Fed policy expectations could reprice near-term AUD/USD ranges.
This analysis is produced for traders seeking actionable levels; BPayNews will monitor whether the breakout holds into the weekly close.
FAQ
Why is AUD/USD rising today?
Momentum has accelerated after price cleared a multi-month resistance band at 0.6625–0.6635, triggering follow‑through buying and stops above the range.
What are the next resistance levels for AUD/USD?
The next marker is around 0.6659. Above that, the September tops near 0.6688–0.6706 come into focus.
What would invalidate the bullish setup?
A sustained move back below 0.6635—and especially under 0.6625—would signal a failed breakout and heighten pullback risks.
Is the move fundamentally driven or technical?
Today’s advance is primarily technical, with price clearing a well-defined range. Broader drivers like U.S. yields and risk sentiment remain important context.
What should short-term traders watch now?
Watch for acceptance above 0.6635 on pullbacks, reaction to 0.6659, and whether momentum builds toward 0.6688–0.6706. Monitor U.S. yield swings and any fresh RBA/Fed headlines for volatility.
