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.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.