The AUD/USD pair faced renewed selling pressure after attempting an intraday recovery to the 0.6510 region on Thursday. Prices fell to a fresh daily low during early European trading, hovering below the key 0.6500 psychological level. This movement follows a brief recovery from the lowest levels seen since early August, with the pair showing little change on the day.

The US Dollar (USD) gained traction, reversing part of its losses from Wednesday’s dip to a two-week low. This rebound was supported by resilient US economic data, highlighting stalling inflation progress and solid growth prospects, reinforcing expectations of a cautious Federal Reserve (Fed) approach toward further rate cuts. Rising US Treasury yields further bolstered the USD, while geopolitical risks—stemming from the prolonged Russia-Ukraine conflict and US President-elect Donald Trump’s tariff threats—supported safe-haven demand for the Greenback.

Additionally, tensions surrounding a potential US-China trade war weighed on the China-linked Australian Dollar (AUD). While a positive risk tone and the Reserve Bank of Australia’s (RBA) hawkish stance offered some support, these factors were insufficient to offset the broader bearish sentiment surrounding the pair.

With the US Thanksgiving holiday reducing market liquidity, traders are unlikely to take strong positions. However, the fundamental landscape suggests that any AUD/USD recovery may face significant resistance and could present selling opportunities.

Trade Idea:
Sell AUD/USD on rallies near 0.6515, targeting 0.6450 with a stop-loss at 0.6540. Rationale: USD strength and risk-off sentiment favor downside moves.