AUD/USD consolidates toward the top-end of the 0.6100-0.6330 range (BBH)

BBH’s FX analysts remark that the AUD/USD is consolidating near the top of its year-to-date range of 0.6100-0.6330.

RBA should begin easing at the next February 18 meeting.

“In February, Australia’s Westpac-Melbourne Institute Consumer Sentiment Index remained basically constant at 92.2. While the headline print remained below the long-term average of 100.5, the forward-looking sub-indices rose.”

“Regardless, softer inflation pressures in Q4 support the case for the RBA to start easing at the next February 18 meeting, with markets pricing-in a 90% probability.”

Following minor losses on Monday, the EUR/USD trades in a tight range near 1.0300. The pair fails to gain traction as investors await further details on US President Trump’s reciprocal tariff plan and Fed Chairman Powell’s testimony.”RBA/Fed policy trend and sluggish Chinese economic activity point to additional AUD/USD downside.” On the charts, EUR/USD appears to have deflated since its recent highs at 1.0450. The pair should find some solid support at the weekly low of 1.0209, set on February 3. A break below this level might cause a decline to 1.0176, the lowest mark seen in 2025 thus far.

On the upside, resistance is seen around 1.0532—the yearly high from January 27—with additional obstacles at 1.0629 (the December peak) and the 200-day Simple Moving Average at 1.0754.

The Relative Strength Index (RSI) has fallen to around 42, indicating a lack of momentum, while the Average Directional Index (ADX) remains near 18, meaning that the current trend may be fading—an crucial factor for prop firm tech when examining market circumstances.