**AUD/USD Holds Firm Above 0.6600, Nears Two-Month High Before Key US PCE Release**
*Based on original content by Anil Panchal at FXStreet
Additional insight from Reuters and Bloomberg*
—
**Overview**
The Australian dollar (AUD) has maintained its positive momentum against the US dollar (USD), holding steady above the psychologically significant 0.6600 mark as of early December 2025. This places AUD/USD at a level very close to its highest point in two months. The pair’s steadiness reflects a combination of factors, including ongoing optimism about the Reserve Bank of Australia’s (RBA) monetary policy stance, improved risk sentiment globally, subdued performance by the US dollar, and anticipation surrounding crucial US inflation data, specifically the Personal Consumption Expenditures (PCE) Price Index due later in the week.
As investors digest economic developments both in Australia and the United States, the forex market continues to track changing expectations for central bank actions and the trajectory of inflation, all of which are pivotal for currency movements.
—
**AUD/USD Spot Performance and Key Technical Levels**
– AUD/USD traded steady above 0.6600 during the Asian session, marking only a minor change from the prior day.
– The currency pair recently touched its highest levels since mid-October, signaling strong underlying demand for the Australian dollar.
– The short-term outlook remains bullish as long as the pair stays above the 200-day simple moving average around 0.6540.
– Immediate resistance is visible near the 0.6675 level, which coincides with the October swing high.
– On the downside, support can be found near 0.6580, followed by the 0.6540 region.
Technical indicators on the daily chart reinforce AUD’s momentum:
– The Relative Strength Index (RSI) remains above 50, suggesting buyers continue to dominate.
– The 50-day and 100-day moving averages are converging, with prices comfortably trading above these indicators, supporting the bullish trend structure.
—
**Fundamental Drivers for AUD/USD Stability**
**1. Reserve Bank of Australia’s Monetary Policy Outlook**
– The RBA held rates steady at its last meeting but maintained a hawkish bias, leaving open the possibility of further rate hikes if inflation pressures persist.
– Markets are betting on the RBA keeping policy tight for a prolonged period, given Australia’s sticky core inflation and resilient labor market.
– Any signs of disinflation could lead to a dovish tilt, but for now, the central bank’s stance supports the Aussie dollar.
**2. Improved Risk Sentiment and Commodity Prices**
– As a commodity-linked currency, the Australian dollar often benefits from improved global risk appetite.
– Recent gains in key commodities, especially iron ore and gold, have provided additional support for AUD.
– Stock markets in Asia-Pacific have remained mostly positive on hopes of a “soft landing” for the US economy, further propping up demand for the higher-y
Read more on AUD/USD trading.