The AUD/USD pair continues its winning streak for the 11th day of trading on Friday, rising to near 0.6620 during the early European trading session. The Australian pair is trading strongly with the Australian Dollar (AUD) outperforming its counterparts amid expectations that the Reserve Bank of Australia (RBA) could adopt a hawkish monetary stance to tame inflation expectations.
The price of the Australian dollar this week
The table below shows the percentage change in the Australian Dollar (AUD) against the major currencies listed this week. The Australian dollar was the strongest against the US dollar.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.52% | -0.80% | -0.99% | -0.21% | -1.15% | -0.66% | -0.06% | |
| euro | 0.52% | -0.28% | -0.47% | 0.32% | -0.63% | -0.14% | 0.46% | |
| GBP | 0.80% | 0.28% | 0.06% | 0.60% | -0.35% | 0.13% | 0.74% | |
| JPY | 0.99% | 0.47% | -0.06% | 0.80% | -0.18% | 0.32% | 0.92% | |
| Canadian | 0.21% | -0.32% | -0.60% | -0.80% | -1.00% | -0.46% | 0.14% | |
| Australian dollar | 1.15% | 0.63% | 0.35% | 0.18% | 1.00% | 0.49% | 1.09% | |
| New Zealand dollar | 0.66% | 0.14% | -0.13% | -0.32% | 0.46% | -0.49% | 0.60% | |
| Swiss franc | 0.06% | -0.46% | -0.74% | -0.92% | -0.14% | -1.09% | -0.60% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select the Australian dollar from the left column and move along the horizontal line to the US dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
The Reserve Bank of Australia’s expectations intensified on Thursday after the release of monthly Australian household spending data for October, which came in stronger at 1.3% versus 0.3% in September.
Earlier this week, Reserve Bank of Australia Governor Michael Bullock also stated during his testimony to the parliamentary committee that monetary policy adjustments would be necessary if inflation proved persistent.
Meanwhile, the US Dollar (USD) is trading cautiously as investors are confident that the Federal Reserve (Fed) will cut interest rates in its monetary policy announcement on Wednesday. The CME FedWatch tool shows that the probability of the Fed cutting rates by 25 basis points to 3.50%-3.75% at its December policy meeting is 87%.
AUD/USD daily chart
AUD/USD is trading higher at 0.6622 on Friday. The 20-day Exponential Moving Average (EMA) is sloping higher, and the price is consolidating above it, reinforcing the uptrend. Distance above the 20-day moving average indicates a trend extension rather than a mean reversal.
The 14-day Relative Strength Index (RSI) at 66.00 indicates strong momentum below an overbought reading.
The RSI north of 60 supports the uptrend and will only turn into a warning in the event of a reversal. The 20-day EMA supports at 0.6542; A daily close below this line may trigger a corrective pullback bias. On the upside, the Australian pair may rise towards the highest level recorded on September 18 at 0.6660 if it breaks above the 0.6629 barrier, which is the highest level in October.
(Technical analysis of this story was written with the help of an artificial intelligence tool)
Economic indicator
Federal interest rate decision
the Federal Reserve The Federal Reserve deliberates on monetary policy and decides on interest rates at eight pre-scheduled meetings annually. It has two mandates: keeping the inflation rate at 2%, and maintaining full employment. Its main tool for achieving this end is setting interest rates – at which banks lend and banks lend to each other. If it decides to raise interest rates, the US dollar (USD) tends to strengthen because it attracts more foreign capital inflows. If they lower interest rates, they tend to weaken the US dollar while draining capital to countries that offer higher returns. If interest rates are left unchanged, attention turns to the tone of the FOMC statement, and whether it is hawkish (expecting interest rates to rise in the future), or dovish (expecting interest rates to fall in the future).
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Next release:
Wednesday 10 December 2025 at 19:00
repetition:
irregular
consensus:
3.75%
former:
4%
source:
Federal Reserve
