AUD/USD slumping back into 0.6600 as Aussie backslides ahead of RBA rate call

The AUD/USD is down over a full percent in one-sided action on Monday.
The Aussie has seen Friday’s gains entirely pared away as markets bid up the US Dollar.
RBA broadly expected to stand pat on rates once more as the Australian economy weakens.

Joshua Gibson FXStreet

The AUD/USD has steadily fallen on Monday, backsliding a full percent plus extra and paring back last week’s late rally, sending the Aussie (AUD) back towards the 0.6600 handle against the US Dollar (USD).

The Reserve Bank of Australia (RBA) is broadly expected to hold interest rates at 12-year highs of 4.35% for the December rate call, scheduled to be announced at 03:30 GMT.

See More: Australia Interest Rate Decision Preview

Market focus will be on RBA Governor Michele Bullock’s ensuing press conference as investors attempt to glean as much forward guidance out of the RBA’s statements as possible.

The RBA gave an additional 25 basis point rate hike in November as inflation continues to plague the Australian economy, but hampered economic growth and unsteady domestic market pressures are leaving the RBA stuck between a rock and a hard place.

RBA expected to hold at 4.35%

Further rate hikes threaten to further destabilize the Australian economy, and too little action on rates in the face of still-high inflation threatens to exacerbate inflation in a self-fulfilling prophecy cycle of prices running ahead of consumer expectations of further inflation.

With Aussie markets focusing squarely on the RBA, the Aussie central bank’s rate statement will dictate the near-term flows of the AUD, but near-term moves will be quickly capped off heading into the mid-week as investors gear up for 2023’s final US Nonfarm Payrolls print due on Friday.

AUD/USD Technical Outlook

The Aussie’s Monday backslide sees 0.6600 back on the table, wiping away Friday’s bull rally into 0.6690. The AUD/USD’s inability to reclaim the 0.6700 handle is exacerbating downside flows, and the pair is set for an intraday clash with the 200-hour Simple Moving Average (SMA).

The AUD/USD has seen a bullish recovery in recent weeks, climbing nearly 7% from October’s bottom bids at 0.6270. Further bullish topside is looking limited with prices struggling to develop momentum at the 200-day SMA, but bidders will be looking for an upside continuation if an extended decline sees the pair challenging the 50-day SMA rising into 0.6450.

AUD/USD Hourly Chart

AUD/USD Daily Chart

AUD/USD Technical Levels

AUD/USD

Overview
Today last price	0.6612
Today Daily Change	-0.0062
Today Daily Change %	-0.93
Today daily open	0.6674

Trends
Daily SMA20	0.6519
Daily SMA50	0.6428
Daily SMA100	0.6476
Daily SMA200	0.658

Levels
Previous Daily High	0.6676
Previous Daily Low	0.66
Previous Weekly High	0.6677
Previous Weekly Low	0.6567
Previous Monthly High	0.6677
Previous Monthly Low	0.6318
Daily Fibonacci 38.2%	0.6646
Daily Fibonacci 61.8%	0.6629
Daily Pivot Point S1	0.6624
Daily Pivot Point S2	0.6574
Daily Pivot Point S3	0.6548
Daily Pivot Point R1	0.67
Daily Pivot Point R2	0.6726
Daily Pivot Point R3	0.6776

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD recovers to 1.1750 region as 2025 draws to a close

Following the bearish action seen in the European session on Wednesday, EUR/USD regains its traction and recovery to the 1.1750 region. Nevertheless, the pair's volatility remains low as trading conditions thin out on the last day of the year.

GBP/USD stays weak near 1.3450 on modest USD recovery

GBP/USD remains under modest beairsh pressure and fluctuates at around 1.3450 on Wednesday. The US Dollar finds fresh demand due to the end-of-the-year position adjustments, weighing on the pair amid the pre-New Year trading lull.

Gold retreats to $4,300 area, looks to post monthly gains

Gold stays on the back foot on the last day of 2025 and trades near $4,300, possibly pressured by profit-taking and position adjustments. Nevertheless, XAU/USD remains on track to post gains for December and extend its winning streak into a fifth consecutive month.

Bitcoin, Ethereum and XRP prepare for a potential New Year rebound

Bitcoin, Ethereum, and Ripple are holding steady on Wednesday after recording minor gains on the previous day. Technically, Bitcoin could extend gains within a triangle pattern while Ethereum and Ripple face critical overhead resistance.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).