AUD/USD Update 19 December 2025
The canary is singing
The next big direction for the USD is most clear in AUD/USD. Since July price has been glued to the 15 year downtrend line. We thought a weak USD would move price significantly away from the line. But it hasn’t.
A break below 0.6425 could yield 0.6270 and then 0.6170. On the upside 0.6710 is the first target.
The market is beginning to price in rate hikes in bonds but not in spot yet.