The AUD/USD pair maintained its upward momentum, achieving its peak levels since October 2024 following the release of the Reserve Bank of Australia’s minutes from the latest monetary policy meeting. The value increased to a peak of 0.6700, significantly surpassing the November low of 0.6420. The AUD/USD exchange rate remained stable as the RBA minutes indicated a possible divergence between the Federal Reserve and the Reserve Bank of Australia. Minutes released on Tuesday indicated that officials from the Reserve Bank of Australia considered various scenarios for interest rate increases during the final monetary policy meeting of the year.
The likelihood of an interest rate hike by the RBA has increased significantly following the recent inflation report, which indicated a notable rise in consumer prices last month. This week’s report indicated a continued rise in inflation expectations for the month. An RBA rate hike is anticipated as certain Federal Reserve officials are still contemplating interest rate cuts, despite the Bureau of Labor Statistics releasing robust macroeconomic data on Tuesday. The report indicated that the economy experienced its most rapid growth in years during the third quarter, even in the face of persistent tariff uncertainties.
The American economy has experienced a significant uplift due to solid consumer spending, which is, in part, fueled by the impressive results of Buy Now, Pay Later companies. Furthermore, the continuous investment in AI has contributed positively to the economy, as major corporations such as Amazon, Google, and Meta Platforms allocate billions of dollars towards data centers. However, additional data indicated that the economy faced significant risks, including the persistent decline in consumer confidence. Confidence has declined due to the increasing unemployment rate and concerns regarding inflation in the nation.
The daily timeframe chart indicates that the AUD/USD exchange rate has remained stable over the past few weeks, and on Tuesday, it reached its highest level since October 2024. The asset surpassed the significant resistance threshold at 0.6685, marking its peak for September and the prior year-to-date high. The Relative Strength Index and the MACD indicators have shown an upward trend, indicating an increase in momentum. Consequently, the pair is expected to maintain its upward trajectory, with the next significant target being the psychological level at 0.6800. A decline beneath the critical support level at 0.6617 will negate the optimistic perspective.