• AUD/USD edged lower on Friday after an earlier rally triggered by softer-than-expected U.S. CPI data faded.
• AUD/USD climbed to 0.6646 but buying momentum faded, with bulls losing traction and the pair subsequently drifting lower.
• The Australian dollar is unlikely to extend gains beyond the 2025 high of 0.6707 in the near term, as fading momentum and policy uncertainty continue to weigh on market sentiment.
• Attention now turns to the Reserve Bank of Australia’s December monetary policy board meeting minutes, due for release on Tuesday, for fresh guidance on the domestic rate outlook.
• Immediate resistance is located at 0.6619(SMA 5), any close above will push the pair towards 0.6634(38.2%fib).
• Support is seen at 0.6596 (50%fib) and break below could take the pair towards 0.6557(61.8%fib).
Recommendation: Good to sell around 0.6610, with stop loss of 0.6650 and target price of 0.6560
