AUD/USD Breaks Above 0.6605 on Technical Momentum Before RBA Decision

AUD/USD surged 0.8% to 0.6635 after breaking above the critical 0.6605 resistance level, confirming a major bullish trendline breakout ahead of Tuesday's Reserve Bank of Australia policy meeting. The pair's technical indicators strongly support further upside, with MACD showing firm positive momentum and RSI rebounding sharply from near-oversold conditions below 30 to current levels near 55. The breakout above the descending trendline that capped gains since October signals a potential trend reversal. Immediate resistance lies at 0.6680 (November high), while the 0.6605 breakout level now serves as key support. Market participants are positioning for a hawkish RBA stance, with inflation remaining elevated at 3.5% year-over-year, well above the central bank's 2-3% target range. A hold at 4.35% with hawkish forward guidance could propel AUD/USD toward 0.6700, while any dovish surprise might trigger a retest of 0.6605 support.