The AUD/USD pair saw a 0.26% increase, reaching 0.6610 during Tuesday’s trading session, surpassing the 100 and 200-day Simple Moving Average (SMA) convergence. The Reserve Bank of Australia’s (RBA) strong hawkish position and positive mid-tier economic data from Australia have bolstered the Australian dollar.
With a positive economic outlook and concerns about high inflation, the RBA is expected to continue its hawkish stance, further supporting the Australian dollar.
Key Market Updates: Strong Data Boosts Demand for Aussie
- The August Westpac consumer confidence index exceeded expectations at 85.0, marking the highest level since February.
- July’s NAB business confidence index slightly fell short at 1, compared to a revised June figure of 3.
- Despite market expectations of a rate cut by year-end, strong economic data could delay easing measures to 2025.
- Weaker US Producer Price Index (PPI) data contributed to USD weakness, supporting the AUD/USD pair’s upward movement.
Technical Analysis: AUD/USD Consolidates near Resistance at 0.6610
The Relative Strength Index (RSI) shows a slightly bullish trend at 53, while the Moving Average Convergence Divergence (MACD) indicates increasing bullish momentum with rising green bars.
Confirmation of the bullish recovery will come if the pair consolidates above the 100 and 200-day SMA convergence at 0.6610. Key support levels lie at 0.6600, 0.6580, and 0.6560.