AUDUSD is consolidating ahead of renewed upside

The AUDUSD pair surged to a new yearly high during Monday's trading session, only to slip into a brief, local pullback. This morning, however, buying momentum came roaring back, bolstered by the steady uptrend anchored at November's lows. On the daily chart, a bullish "flag" is waving: after last week's hike, the price has consolidated near 0.67, a setup that often signals a rally is merely regrouping—this time with 0.68 in its sights.

In fact, the situation calls for caution. The Stochastic indicator has tipped into sell territory, leaving new long positions a bit exposed. Prudent traders may wait for a better entry point near the rising trendline and 0.667 support, where the odds for a rebound improve. A modest retreat would also help the RSI cool off from overbought extremes. All told, bulls still hold the cards. For sellers to seize the initiative, they would first need to crack the 0.66 floor.

With the holiday season in full swing, the economic calendar is predictably light. Although there are still plot twists to watch. Later today, the Federal Reserve (Fed) will lift the curtain on the minutes from its December 10 meeting, offering clues about internal divisions over the 2026 policy path. Market players are also keeping a close eye on Washington, where President Donald Trump has confirmed plans to name Jerome Powell's successor as the next Fed Chair in January.

The Aussie felt some spillover pressure from yesterday's dip in precious metals, yet the underlying outlook for gold remains firmly bullish—a positive for Australia's export-driven currency. Meanwhile, the central bank could turn up the heat on the AUD if it pulls the trigger on a rate hike early next year—a scenario that two of the country's four largest banks have already priced in.

Consider the trading plan down below:

Buy AUDUSD not lower than 0.667. Place Take Profit at 0.68. Set Stop Loss at 0.66.