AUD/USD hits 2025 highs at 0.6620, bulls eye channel break before CPI

AUD/USD reached fresh 2025 highs at 0.6620, gaining 0.7% (46 pips) as bullish momentum accelerates ahead of next week's Australian CPI release. The pair has broken above a descending channel that confined price action since January, signaling a potential trend reversal. Technical indicators show strong buying pressure, with the RSI approaching overbought territory at 68 and the MACD histogram expanding positively. The breakout targets immediate resistance at 0.6650, representing the 200-week moving average, while support has formed at 0.6580. Market positioning data reveals net long positions increasing by 15% over the past week, reflecting growing optimism about the Australian dollar. The upcoming inflation data will be crucial, with expectations for a 3.2% year-over-year reading that could prompt the RBA to maintain its hawkish stance. A decisive close above 0.6650 would confirm the bullish breakout and open the path toward 0.6700.