FxWirePro: AUD/USD sustains gains as uptrend remains strong

• AUD/USD advanced  on Friday as Australian dollar was supported by  increasing  bet that RBA next move on interest rates will be a hike.

• Expectations of a more hawkish stance from the RBA emerged after the release of the December 9 monetary policy minutes  , where policymakers discussed the possibility of interest rate hike  this year.

•Focus will shift to the Q4 CPI data on January 28, where an upside surprise in core inflation could trigger a move at the RBA’s February 3 meeting.

• The probability of a quarter-point rise in the Reserve Bank of Australia's 3.6% cash rate is put at 18% for February, lifting to 70% for May. A move in August is almost fully priced.

•The Australian dollar closed out 2025 on a strong footing, rising nearly 8% for the year its best annual performance since 2020.

• Immediate resistance is located at 0.6735(23.6%fib), any close above will push the pair towards 0.6746(Higher BB).

• Support is seen at 0.6669(SMA 20) and break below could take the pair towards 0.6647(50%fib).

 Recommendation: Good to buy  around 0.6680, with stop loss of 0.6640 and target price of 0.6760