AUD/USD Price Prediction: Looks to build on move beyond 200-day SMA/0.6600 ahead of US PPI

AUD/USD prolongs its one-week-old uptrend and climbs to a three-week top on Tuesday.
The RBA’s hawkish tilt remains supportive amid subdued USD demand ahead of US PPI.
The technical setup favors bulls and supports prospects for a further appreciating move.

Haresh Menghani FXStreet

The AUD/USD pair attracts some follow-through buying for the second successive day on Tuesday and climbs to a fresh three-week top during the early part of the European session. Spot prices currently trade around the 0.6600 mark, with bulls looking to build on the momentum beyond the very important 200-day Simple Moving Average (SMA) resistance.

Against the backdrop of the Reserve Bank of Australia's (RBA) hawkish stance, a stable performance across the global equity markets is seen lending some support to the risk-sensitive Australian Dollar (AUD). The US Dollar (USD), on the other hand, struggles to gain any meaningful traction amid expectations for bigger interest rate cuts by the Federal Reserve (Fed). This turns out to be another factor acting as a tailwind for the AUD/USD pair, though the upside potential seems limited ahead of the crucial US inflation figures.

From a technical perspective, sustained strength and acceptance beyond the 200-day SMA hurdle would be seen as a fresh trigger for bullish traders and pave the way for a further appreciating move. Given that oscillators on the daily chart have just started moving in positive territory, the AUD/USD pair might then climb to the 0.6655 intermediate hurdle en route to the 0.6675-0.6680 region and the 0.6700 mark. The latter coincides with the 78.6% Fibonacci retracement level of the July-August fall and should act as a pivotal point.

On the flip side, the 0.6575-0.6570 area, or the 50% Fibo. level now seems to have emerged as an immediate support. This is followed by support near the 0.6545 horizontal zone, the 38.2% Fibo. level near the 0.6520 region, and the 0.6500 psychological mark. Some follow-through buying will suggest that the latest recovery move from the YTD low has run its course and drag the AUD/USD pair to the 0.6435 intermediate support en route to the 0.6400 mark and last week's swing low, around the 0.6350-0.6345 region.

AUD/USD daily chart

Economic Indicator

Producer Price Index (YoY)

The Producer Price Index released by the Bureau of Labor statistics, Department of Labor measures the average changes in prices in primary markets of the US by producers of commodities in all states of processing. Changes in the PPI are widely followed as an indicator of commodity inflation. Generally speaking, a high reading is seen as positive (or bullish) for the USD, whereas a low reading is seen as negative (or bearish).

EUR/USD struggles to hold above 1.1800 as USD stabilizes

EUR/USD loses its recovery momentum and retreats below 1.1800 in the second half of the day on Tuesday. The US Dollar finds a foothold after staying under pressure in the early European session, limiting the pair's upside in the near term.

GBP/USD pares gains below 1.3700 as mood turns cautious

GBP/USD enters a consolidation phase and holds steady near 1.3650 after rising above 1.3700 to start the European session. The cautious market mood seems to be making it difficult for Pound Sterling to outperform the US Dollar, while investors refrain from taking large positions ahead of the Bank of England's policy meeting later in the week.

Gold gathers recovery momentum, climbs above $4,900

Gold recovers further from its lowest level since January 6 and trades above $4,900, rising about 6% on a daily basis. The US Dollar holds steady following Monday's advance but XAU/USD preserves its bullish momentum, possibly supported by dip-buying that came after the sharp decline.

Hyperliquid rallies as HIP-4 proposal supports prediction market

Hyperliquid (HYPE) extended its recovery by 8% at press time on Tuesday, driven by the HIP-4 proposal to add outcome trading, referring to prediction markets and bounded options contracts.

Japan’s snap elections: The fiscal credibility test and the market playbook

Japan has opted for a snap election on 8 February 2026 rather than waiting for the normal electoral calendar, which makes this a faster, higher-stakes reset of political mandate.

Ripple slides as low retail, institutional demand weigh

Ripple edges lower, trading marginally below $1.60 at the time of writing on Tuesday as bulls and bears battle for control. The cross-border remittance token rose to $1.66 on Monday, but profit-taking and risk-off sentiment in the broader crypto market led to the ongoing correction.