Australian Dollar maintains strength on hawkish RBA and strong data

• AUD/USD registers an additional boost, reaching 0.6610.
• RBA maintains its hawkish position, undergirding a strengthened AUD.
• Strong mid-tier data may fuel additional hawkish bets on the RBA hiking cycle.

The AUD/USD pair experienced an increase of 0.26% during Tuesday's session, settling near 0.6610, above the 100 and 200-day Simple Moving Average (SMA) convergence. The Reserve Bank of Australia's (RBA) unwavering hawkish stance and stronger mid-tier Australian economic data reported during the Asian session underpin the Aussie.

Considering the mixed Australian economic outlook and high inflation, the RBA has all the reasons to remain hawkish, which should continue benefiting the Aussie.

Daily digest market movers: Aussie finds more demand from strong confidence data

• The August Westpac consumer confidence figure came in at 85.0, beating a revised July figure of 82.7. This was the second straight improvement and the highest since February.
• Furthermore, July's NAB business confidence came up a bit short, landing at 1 against a revised June measure of 3.
• Markets are seeing strong odds of a cut by year's end, but if data continues coming in strong, investors might push the easing to 2025.
• On the US front, soft Producer Price Index (PPI) fueled USD weakness, which also favoured the pair’s upside.

AUD/USD technical outlook: Pair consolidates near significant resistance around 0.6610

The Relative Strength Index (RSI) hovers slightly above the neutral zone at 53, indicating a slightly bullish streak. The Moving Average Convergence Divergence (MACD) presents rising green bars.

This points out that the recent bullish recovery is taking shape, but the confirmation will be if the pair manages to consolidate above the 100 and 200-day SMA convergence near 0.6610. Support to the downside line up at 0.6600, 0.6580 and 0.6560.