AUD Rebounds on Consumer Sentiment, Fears of Further RBA Hikes Persist

Australia's consumer sentiment index rebounded sharply in August after the Reserve Bank of Australia (RBA) held interest rates steady, according to a recent survey by Westpac.

The index rose from 83.9 to 88.9, representing a 6% increase, which is its highest level since May. However, despite this improvement, the underlying growth picture remains soft, suggesting that the RBA may continue to hold off on raising interest rates.

AUD/USD has been trading near 10-week highs but shows signs of fatigue around resistance levels ahead of Thursday's employment report. The rebound in consumer sentiment has boosted the Australian dollar, but investors remain cautious about the potential for further tightening by the RBA.