AUDUSD on the verge of a major breakout: fundamentals align perfectly

The RBA continues to support the Australian dollar, and AUDUSD may extend its rise toward the 0.6710 level. Details — in our analysis for 12 December 2025.

AUDUSD forecast: key trading points

• The RBA kept the interest rate unchanged at 3.6%
• No near-term monetary policy easing is expected from the RBA
• Australia’s labor market remains stable
• AUDUSD forecast for 12 December 2025: 0.6710

Fundamental analysis

Today’s AUDUSD forecast favors the Australian dollar, which has strong chances to continue recovering against the USD. At this stage, the pair is trading near the 0.6660 level.

Key drivers behind the strengthening of the Australian dollar:

• The RBA’s stance remains more cautious compared to major central banks. The RBA once again kept the interest rate unchanged at 3.6%
• The regulator is not rushing toward monetary easing, leaving room for further AUD appreciation
• A resilient Australian labor market provides additional support for the AUD
• Persistently strong demand from China for raw materials supports Australia’s trade balance and strengthens the AUD
• Markets expect further rate cuts from the Federal Reserve, with several reductions anticipated in 2026
• A slowing US economy and rising unemployment increase pressure on the USD

Against this backdrop, AUDUSD may continue its two-week upward trend.

AUDUSD technical analysis

On the H4 chart, AUDUSD tested the upper Bollinger Band and formed a Hanging Man reversal pattern. At this stage, prices continue to develop a corrective wave as part of the pattern’s execution. The nearest pullback target is the support level at 0.6635.

However, the AUDUSD forecast for December 12, 2025, also allows for an alternative scenario in which the pair resumes its upward wave toward the nearest resistance at 0.6710 without testing support.

Summary

Overall, the AUDUSD outlook remains favorable for the Australian dollar. Technical analysis suggests considering a corrective pullback toward the 0.6635 support level before the continuation of the upward trend.

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