FxWirePro: AUD/USD firms as Australian household spending records sharp jump

• AUD/USD  rose above 0.6600 level on Thursday  as surprising strength in domestic spending data boosted Australian dollar.

• Australian households recorded their strongest spending surge in nearly two years in October, underscoring signs of economic heat that may push the next interest rate move higher rather than lower.

• According to figures from the Australian Bureau of Statistics on Thursday, household spending jumped 1.3% in October to A$78.4 billion ($51.77 billion), driven by year-end sales, following a modest 0.3% increase the month before.

• A day earlier, figures showed the economy grew at its fastest annual rate in two years in the September quarter, driven by a surge in business, government, and consumer spending.

• The RBA has delivered three rate cuts this year, bringing the benchmark to 3.6%, and is all but guaranteed to hold steady next week, though its outlook may turn more hawkish after a sharp inflation pickup in Q3.

• Immediate resistance is located at 0.6622(38.2%fib), any close above will push the pair towards 0.6632(Higher BB).

• Support is seen at 0.6550 (50%fib) and break below could take the pair towards 0.6517(SMA 20).

 Recommendation: Good to buy  around 0.6600, with stop loss of 0.6550 and target price of 0.6680