AUD/USD keeps gains 0.64 despite horrible NAB Business Confidence
- AUD/USD shrugs of the horribly weak Aussie Business Confidence data released at 01:30 GMT.
- Markets seem to have priced in the coronavirus-led slowdown in the Australian and the global economy.
- Focus now is on China's trade, which is forecasted to show a 15% drop in exports in March.
The Aussie dollar has turned a blind eye towards the horribly weak Australian data released soon before press time and remains better bid against the greenback.
The AUD/USD pair continues to hover well above 0.64 and was last seen trading near the session high of 0.6418.
National Bank of Australia's (NAB) Business Confidence for March came in -66 at versus expectations for -2 and down significantly from February's -4. Meanwhile, the Business Conditions Index fell -21 in March versus expectations for 1 following February's reading of 0.
The marked deterioration in both indices is not surprising as the coronavirus outbreak gathered steam across the globe last month, pushing the financial markets into the panic mode. The Reserve Bank of Australia (RA) responded by cutting rates to a record low of 0.25% and launching a yield curve control program on March 18.
RBA's efforts may lift the business confidence over the coming months, although the improvement would be limited if the virus continues to spread.
With the Aussie dollar holding strong amid weak data, it seems safe to say that markets may be done pricing the negative impact of the virus. That said, the bears may return if the number of new cases begins rising in Australia, China and across the world in the coming days.
The focus now shifts to China trade data, due in few hours, which is expected to show both exports and imports contracted in March.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
