AUD extends its rally – OCBC

The Australian Dollar (AUD) continued climbing against the US Dollar (USD), supported by firm technicals and favourable external drivers as the currency approaches key resistance levels. AUD/USD was last at 0.6615 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

GDP data strengthens recovery outlook

"AUD extended its run higher despite the initial slippage post-GDP report yesterday. Bullish momentum on daily chart intact while RSI rose. Bias to stay long. Resistance at 0.6610/40 levels before 0.67. Support at 0.6550, 0.6510 (21 DMA)."

"Run higher remains consistent with our view for long AUD bias, premised on RBA on extended pause, domestic economic remains resilience while external drivers stay conducive: steady RMB, softer USD and Fed on easing bias."

"Yesterday’s GDP report further reinforced the view that AU economic recovery should be sustained into 1H 2026, with impulse primarily coming from domestic demand, led by resilient household consumption, rebound in services and firmer housing activities."