Buying AUDUSD with 0.66400 in view while correction is completing

Today, September 23, 2025, the AUDUSD currency pair opened at 0.65943. Quotes are now trading below this level, being pressured by a stronger US dollar. The Federal Reserve (Fed) officials maintained their cautious approach, despite a recent rate cut. This stance has provided support for the greenback.

Meanwhile, the fundamental picture for the Aussie remains ambiguous. On the one hand, Australia’s economy is in a good state, with inflation reaching the target range of 2–3% and the labor market showing signs of steadiness. This has allowed the central bank to take a wait-and-see approach. On the other hand, the country’s economic recovery is at risk of slowing down, as US trade tariffs are increasing uncertainty.

The key difference between the Fed and the Reserve Bank of Australia (RBA) is that the former adheres to a more dovish stance than the latter. While the US regulator has just resumed its easing cycle, signaling further cuts, the RBA is maintaining a cautious position. These conditions provide support for AUDUSD in the medium term. However, in the short run, investors are playing it safe, strengthening the US dollar.

From a technical perspective, AUDUSD is in a corrective decline on the daily chart following the recent rally started prior to the Fed’s latest meeting. The Stochastic Oscillator has entered oversold territory (16–28), confirming that sellers are loosening their grip on the market and the indicator is approaching the bottom level. The Chaikin Oscillator has slowed down and is now attempting to reverse. The overall picture shows that bearish momentum is weakening, and the price is consolidating before a continuation of the established movement.

Traders have already factored in the risk of Australia’s economic slowdown and the RBA’s cautious approach at its next meeting. Tomorrow’s higher inflation data could trigger the pair’s growth. If the figures are weaker than expected, AUDUSD may test support at 0.65700. At the same time, oversold conditions and the policy divergence between the Fed and the RBA will probably prevent a significant price decline.

Take into account the following trading plan:

Buy AUDUSD at the current price. Take profit: 0.6640. Stop loss: 0.6550.

This forecast remains valid from September 23 to September 30, 2025.