FxWirePro: AUD/USD firms after upbeat consumer spending data

• AUD/USD firmed on Tuesday  after stronger-than-expected consumer spending data indicated demand remained resilient despite higher borrowing costs, leaving room for another interest rate hike if necessary.

• Australian Bureau of Statistics data showed household spending rose 0.8% in June, boosted by stronger sales of new electric vehicles amid elevated petrol prices.

• The increase in household spending came despite weak consumer sentiment, which has remained subdued following the Reserve Bank of Australia's three interest rate hikes this year.

• Markets have largely ruled out the possibility of an RBA rate hike at next week's policy meeting, with expectations for a September increase also remaining minimal.

• Immediate resistance is located at 0.7064 (Higher BB), any close above will push the pair towards 0.7103(50%fib).

• Support is seen at 0.6990(50%fib) and break below could take the pair towards 0.6913 SMA20(Lower BB).

 Recommendation: Good to sell around 0.7050, with stop loss of 0.7100 and target price of 0.6950