AUD/USD Rebounds on Weaker Dollar, Consumer Confidence Remains Fragile

The AUD/USD pair surged higher on Tuesday, August 18, hitting a new high since June 8 at 0.7128 before retreating to its current price of around 0.7100.

The rebound in the Australian dollar was largely due to the weaker U.S. dollar rather than any strength in the AUD itself.

Australia's consumer confidence index rose 6% month-on-month in August to 88.9, but this improvement is largely driven by mortgage holders and may not be a sustainable trend.

The Westpac-Melbourne Institute Consumer Confidence Index showed that renters' sentiment remains weak, and unemployment expectations have increased, suggesting that households remain cautious about the economic outlook.