A decisive RBA 25bp hike and sticky Australian inflation propelled AUD/USD above the 0.70 mark this week. Technical indicators and a modest USD rebound suggest potential short-term pullbacks; traders should watch 0.7069, 0.7000 and moving-average supports for the next directional clues.

A surprise 25bp Reserve Bank of Australia rate hike on February 3 lifted the Australian dollar above the key 0.7000 AUD/USD threshold. Strong domestic data, commodity support and a softer U.S. dollar combined for the biggest weekly AUD gain in months. This article breaks down the drivers, intraday moves and what to watch next for USD/AUD traders.

USD/AUD fell sharply in late January 2026 as Australian yields stayed firm while markets priced U.S. rate easing. Concrete drivers: RBA’s hawkish posture, Fed dovish shift, commodity support for AUD and renewed carry-trade flows — all combining to push the pair lower and reshape short-term trading dynamics.

USD/AUD declined sharply last week as U.S. legal developments around the Federal Reserve weakened the dollar and Australian CPI data loom. Key technical levels and central-bank signals will guide direction into late January and early February.

USD/AUD held around 1.50 amid growing policy divergence: the RBA’s hawkish posture and persistent Australian inflation contrast with a gradually easing Fed. Weak consumer sentiment and mixed economic data keep traders close to the sidelines until clearer RBA guidance or fresh inflation and jobs prints arrive.

AUD firmed against the US dollar in early January 2026 after easing geopolitical risk, dovish Fed comments and a widening Australia–US yield gap. Key resistance sits near 0.6750–0.6795 (AUD/USD) while supports around 0.6650 could define near-term direction ahead of major U.S. jobs and Australian inflation prints.