AUD/USD runs out of gas near 0.67 as holiday slowdown grinds on

AUD/USD has slipped below the crucial level of 0.6700 to start the final trading week of 2025. This decline follows a recent bullish swing that has now stalled, as traders shift to a defensive positioning during the holiday slowdown. Typically, market activity around year-end is characterized by lower liquidity and reduced volatility, making movements in AUD/USD more tentative. Currently, there is an uptick in risk-off sentiment, largely due to concerns regarding the Australian economy. It’s noteworthy that with AUD/USD trading below its recent uptrend, there might be additional downward pressure in the short term. How the market responds to these dynamics will significantly impact its future movements. Traders need to exercise caution in these less liquid conditions and aim to identify critical support levels, as the potential for further declines looms.