• AUD/USD firmed on Thursday as expectations of another Reserve Bank of Australia (RBA) rate hike in September supported Australian dollar.
• Australia's household spending jumped 1.1% in July, data showed on Thursday, suggesting consumer demand remained resilient despite higher borrowing costs. That added to a hot inflation report on Wednesday that had swap markets pricing a rate hike from the Reserve Bank of Australia (RBA) next month as a coin toss, at 53%probability.
• Stronger-than-expected household spending, together with still-elevated inflation, has reinforced the view that the RBA may need to tighten policy again.
• Immediate resistance is located at 0.7202 (Higher BB), any close above will push the pair towards 0.7259(23.6%fib).
• Support is seen at 0.7145(38.2%fib) and break below could take the pair towards 0.7094 (SMA20 ).
Recommendation: Good to buy around 0.7150, with stop loss of 0.7100 and target price of 0.7220
