AUDUSD – bulls maintain control as Fed seen delivering fresh positive cue

AUDUSD held a firm tone on Monday, trading just below a new 2025 high at 0.6668, extending momentum from last week’s 1.4% rally, its strongest weekly advance since mid-June.

The Australian dollar drew solid support from a weaker US dollar, with markets anticipating a 25 basis points Fed rate cut this week. Attention is on Fed Chair Powell’s comments, which could offer clarity on policy direction for the months ahead. Speculation has also grown around a possible 50 basis points cut and total easing of up to 1% by early 2026.

Key resistance stands at 0.6675 (falling 200WMA), followed by 0.6700 (round figure / 76.4% retracement of 0.6942/0.5914). A sustained break would expose the July and August 2024 highs at 0.6798 and 0.6823.

The technical outlook remains strongly bullish, reinforced by a fresh 20/55DMA bull-cross, though overbought daily stochastic and a slowdown ahead of the Fed meeting may keep upside momentum in check.

Immediate supports are seen at 0.6630 (today’s and Friday’s lows) and 0.6625 (July 24 peak), with the rising 10DMA at 0.6587 expected to protect the downside.

Res: 0.6675; 0.6700; 0.6798; 0.6823
Sup: 0.6625; 0.6600; 0.6587; 0.6650