What a difference a day makes. Given the hard slide through 1.0500 in recent days, it’s a surprise to see AUDUSD bid this strongly into the afternoon close. However, that’s the case, with the major pair now looking to close above the 1.0450 psychological resistance. Behind the move seems to be nothing more than a key fundamental driver.
NAB Positive
According to the National Australia Bank, business confidence in the month of December bounced into positive territory for the Pacific economy. Previously negative, the monthly business survey surged 12 points from a -9 reading in November to +3. The turnaround seems to have been bolstered by improving situations in the European Union and supported by positive equity gains at the end of the year. Subsequently, the better than expected report “may provide a signal of a turning point in the domestic economy”, according to NAB officials.
The notion bolsters the likelihood that the Reserve Bank of Australia will likely remain on hold when they next meet to decide on interest rates next month.
Technical Considerations
With the bounce off of support via the 1.0400 figure, AUDUSD has now surged ahead of the 1.0428 session high from yesterday. A confirmed close above the high would purport a high likelihood for an extension towards 1.0500 in the near term.
Source: FXTrek Intellicharts
NAB Positive
According to the National Australia Bank, business confidence in the month of December bounced into positive territory for the Pacific economy. Previously negative, the monthly business survey surged 12 points from a -9 reading in November to +3. The turnaround seems to have been bolstered by improving situations in the European Union and supported by positive equity gains at the end of the year. Subsequently, the better than expected report “may provide a signal of a turning point in the domestic economy”, according to NAB officials.
The notion bolsters the likelihood that the Reserve Bank of Australia will likely remain on hold when they next meet to decide on interest rates next month.
Technical Considerations
With the bounce off of support via the 1.0400 figure, AUDUSD has now surged ahead of the 1.0428 session high from yesterday. A confirmed close above the high would purport a high likelihood for an extension towards 1.0500 in the near term.
Source: FXTrek Intellicharts
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