The AUD/USD pair experienced an increase of 0.40% during Monday's session, settling near 0.6600. Undoubtedly, the Reserve Bank of Australia's (RBA) unwavering hawkish stance and stronger Chinese inflation figures reported last week provide a supportive platform for the Aussie, although escalating geopolitical tensions in the Middle East might limit its upside.

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

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Daily digest market movers: Aussie up after RBA’s hawkish directions last week, eyes on data later in Asian session

• The Reserve Bank of Australia held its rates steady at 4.35% for a sixth consecutive session last week, noting that "the board is not dismissing any possibilities."
• The Bank underlined the significance of remaining vigilant toward potential inflation threats, implying a reluctance for hasty policy changes.
• Meanwhile, Westpac analysts have shifted their forecast for the first rate cut from November 2024 to February 2025. Hence, the RBA's hawkish posture is likely to bolster the AUD in the near term.
• Investors anticipate further clues from Chinese Retail Sales and Industrial Production figures coming Thursday. Additionally, Australian Wage data from Q2 and Westpac Confidence figures from July, to be released during the upcoming Asian session, will hold the market's attention.

AUD/USD technical outlook: Pair encounters significant resistance around 0.6600

The price action of AUD/USD over the past week reflects that the bulls are facing considerable resistance around the 0.6600 level. The Relative Strength Index (RSI) continues to hover around the neutral zone, while the Moving Average Convergence Divergence (MACD) points to a steady bullish traction. This points out that the recent bullish recovery is waiting for a fundamental catalyst to pierce through the 0.6600 level.

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