• AUD/USD extended gains on Friday as optimism around a potential RBA rate hike in 2026 boosted the Australian dollar.
• Minutes from the RBA’s latest meeting released Tuesday showed policymakers laying the groundwork for a rate hike if inflation fails to ease as expected, underscoring the significance of the Q4 CPI data due on January 28..
•According to analysts, an upside surprise in Q4 core inflation could trigger a rate increase at the RBA’s February policy meeting..
• The RBA’s first policy meeting of the year is scheduled for February 3, with markets pricing in a 28% chance of a 25-basis-point hike to the 3.6% cash rate.
• Immediate resistance is located at 0.6720 (23.6%fib), any close above will push the pair towards 0.6745(Higher BB).
• Support is seen at 0.6698 (Daily low) and break below could take the pair towards 0.6633(38.2%fib).
Recommendation: Good to buy around 0.6690, with stop loss of 0.6620 and target price of 0.6800
