Core Viewpoint - The Australian dollar (AUD) is currently trading at 0.6668 against the US dollar (USD), with market focus on the diverging monetary policies of the Reserve Bank of Australia (RBA) and the Federal Reserve (Fed) [1] Group 1: Monetary Policy Divergence - The RBA has recently signaled a hawkish stance, maintaining the cash rate at 3.6% and indicating no immediate rate cuts, which supports the AUD [1] - In contrast, the Fed is expected to lower rates by 25 basis points in December, with a probability of 82.9%, which is pressuring the USD and providing upward momentum for the AUD [1] Group 2: Economic Indicators - Australia's inflation rate rose to 3.8% year-on-year in October, exceeding the target range of 2%-3%, which supports the RBA's hawkish position [1] - However, the GDP growth for Q3 was only 0.4%, significantly below the expected 0.7%, which may limit the RBA's ability to tighten monetary policy further [1] Group 3: Technical Analysis - The AUD/USD shows a clear bullish trend, having broken through a descending parallel channel and is approaching a key resistance level at 0.6650 [2] - Indicators such as MACD and RSI suggest potential upward movement but also indicate risks of volatility [2] - A breakthrough above 0.6650 could lead to a target of 0.6707, while support is found in the 0.6550-0.6520 range [2] Group 4: Future Focus - Upcoming events include the Fed's meeting, which is expected to increase volatility in the AUD/USD exchange rate [2] - The divergence in policies between the RBA and Fed, along with Australia's economic recovery and commodity price trends, will be crucial in determining the future direction of the AUD [2]