Sees fresh upside above 0.6730

The AUD/USD pair trades slightly lower to near 0.6680 during the European trading session on Wednesday. The Aussie pair faces mild pressure as the US Dollar (USD) rises, even as Federal Open Market Committee (FOMC) minutes of the December policy meeting showed that officials favor further interest rate cuts.

During the day, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, posts a fresh weekly high near 98.35.

On Tuesday, FOMC minutes showed that policymakers supported further monetary easing to ease the burden on the job market, even after reducing interest rates by 25 basis points (bps) to 3.50%-3.75%.

Most participants noted moving toward a more neutral policy stance would help forestall possible job market deterioration,” FOMC minutes showed.

Meanwhile, the Australian Dollar (AUD) trades lower with 2025 drawing close. In 2026, the major focus area for the antipodean will be the inflation data. In the monetary policy meeting earlier this month, the RBA stated that it could raise interest rates if inflation proves to be persistent.

AUD/USD technical analysis

AUD/USD trades mildly lower near 0.6685. Spot holds above a rising 20-day Exponential Moving Average (EMA) at 0.6651, which supports the advance. The 20-day EMA has been trending higher in recent sessions.

The 14-day Relative Strength Index (RSI) at 61 (positive) confirms bullish momentum without overbought conditions.

Bias stays upward while the pair sustains closes above the rising average, and dips would be viewed as corrective within the advance. A daily close above the December 29 high of 0.6725 would open the door towards the round-level figure of 0.6800.

(The technical analysis of this story was written with the help of an AI tool.)