Australian Dollar recedes despite hawkish RBA , US mid-tier data

• AUD/USD continues trading close to dangerous levels near 0.6600.
• Aussie Dollar could benefit from the hawkish tone surrounding the RBA.
• The USD saw some gains due to strong sentiment data from the University of Michigan.

The AUD/USD declined by 0.21% to 0.6620 in Friday's session despite the Reserve Bank of Australia's (RBA) hawkish policy outlook. The decline was primarily attributed to the appreciation of the US Dollar amid less-dovish sentiment surrounding the Federal Reserve (Fed) and strong University of Michigan (UoM) sentiment data, which overshadowed soft Durable Goods figures.

However, the Aussie Dollar could benefit from the RBA's hawkish tone in the coming days.

Daily digest market movers: Australian Dollar declines on US data

• AUD weakened versus USD primarily due to the release of strong UoM data and Durable Goods lower than expected decline.
• In that sense, Durable Goods Orders in the US declined by 0.8% in September, slightly better than market expectations of a 1% decline.
• UoM's Consumer Sentiment index rose to 70.5 in October, beating expectations.
• The strong US data might prompt the Fed to take a more hawkish stance and table the two consensus cuts for November and December.
• In the meantime, the RBA isn't showing signs of being completely open to start cutting with markets only betting on 50% chances of a cut in 2024 which could eventually benefit the AUD.

AUD/USD technical outlook: AUD/USD bearish momentum dominates, support at 0.6600

The AUD/USD pair extended its losses on Friday. The Relative Strength Index (RSI) fell into the oversold area, with a value of 34, and is exhibiting a mildly declining slope, suggesting that selling pressure is rising. The Moving Average Convergence Divergence (MACD) histogram is red and rising, indicating that bearish momentum is increasing.

Overall, the technical outlook for the AUD/USD pair is bearish. The decline in the RSI and the rising MACD histogram suggest that selling pressure is dominating the market. However, it is important to note that the pair is trading near support at 0.6600 and may experience a bounce if it manages to hold above this level.