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    UOB analysts expect the Australian dollar to fluctuate between 0.6655 and 0.6745.

    by VT Markets
    /
    Jan 12, 2026
    The Australian Dollar is likely to trade between 0.6670 and 0.6710, with a potential range of 0.6655 to 0.6745, according to analysts at UOB Group. After a small drop to 0.6682, the currency fell briefly to 0.6664 before closing at 0.6687. This suggests that the force pushing the currency down is weakening. For the one-to-three-week forecast, the Australian Dollar is expected to stay within the range of 0.6655 to 0.6745. There’s a rising chance that the currency might dip below 0.6650 before hitting 0.6745, given the current softer trend. This information comes from the FXStreet Insights Team, which has gathered observations from various analysts.

    Expected Trading Range

    Over the next few weeks, we anticipate that the Australian Dollar will remain within a specific trading range. Prices are expected to fluctuate mainly between 0.6655 on the low end and 0.6745 on the high end. This pattern reflects what we started seeing in January 2025. While we expect stability, the overall tone seems weak, and there’s a greater chance of breaking below the 0.6655 support level. The recent US jobs report showed a strong increase of over 200,000 jobs in December 2025, which continues to strengthen the US dollar. This makes a significant rise in the AUD/USD less likely for now. However, a drastic drop seems improbable due to supportive factors in Australia. The Q4 2025 inflation rate was steady at 3.8%, restricting the central bank’s ability to cut interest rates. Additionally, key commodity prices, like iron ore, remain above $135 per tonne, which supports the currency’s value.

    Trading Strategies

    Given the expectation of limited movement, traders might explore strategies that benefit from low volatility, such as selling out-of-the-money call and put options. Options sellers may aim for strike prices around 0.6750 for calls and below 0.6650 for puts. This strategy capitalizes on prices staying within the established range over the coming weeks. Create your live VT Markets account and start trading now.

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