AUD/USD remains on the defensive after mixed NAB data

Australia's business confidence declined in June.
Business conditions index ticked higher as expected.
AUD/USD remains in the red after the key data release.
A rise in iron ore fails to lift AUD.

Omkar Godbole FXStreet Contributor

The already weak AUD/USD has extended losses following the release of the National Bank of Australia's survey data.

Australia's business confidence index fell to 2 in June as expected from May's print of 7. Meanwhile, the conditions index ticked higher to 3 from May's figure of 1.

The Reserve Bank of Australia (RBA) cut rates by 25 basis points to a record low of 1.25% in June. The move, however, failed to boost business confidence, as indicated by the NAB data. The business conditions, however, improved, but so far, that has failed to put a bid under the AUD.

In fact, the Australian currency is flashing red despite the rise in iron ore prices – one of Australia's top exports. Notably, iron ore futures in China have extended gains to 5% this Tuesday morning, according to @YuanTalks.

The weakness in the AUD/USD pair could be associated with Friday's upbeat US non-farm payrolls release and the drop in the odds of aggressive rate cuts by the US Federal Reserve.

As of writing, the AUD/USD pair is trading at 0.6960, having hit a high of 0.6975 earlier today.

Pivot points

1. R3 0.7019
2. R2 0.7007
3. R1 0.699
PP 0.6978
1. S1 0.6961
2. S2 0.6949
3. S3 0.6932

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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