AUD/USD: No response to uptick in NAB’s business confidence index
|- The AUD is not impressed by a rise in NAB’s business confidence index.
- NAB survey shows the forward-looking indicators continue to deteriorate.
- Business conditions ticked lower in May.
AUD/USD has barely moved in response to an uptick in National Australia Bank’s (NABs) business confidence index, released soon before press time.
The currency pair continues to trade around 0.6960, representing marginal gains on the day.
The business confidence index rose to 7 in May from April’s reading of 0. The rise in business confidence was expected. After all, the Reserve Bank of Australia cut rates by 25 basis points for the first time since 2016. Australian interest rate currently stands at a record low of 1.25%.
While the confidence index ticked higher, the business conditions ticked lower to 1.00 from April’s reading of 3.00.
Also, details of the NAB surveys show the forward-looking indicators remain weak. For instance, forward orders declined further in May and capacity utilization fell below average. The surveys also show weak price pressure across inputs and final products.
That may be the reason for AUD’s inability to cheer the rise in business confidence. Looking forward, the currency pair risks falling to the 4-hour chart 100MA, currently at 0.6933, having charted a bearish marubozu candle on Monday.
Pivot levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.