AUD/USD: Australia’s NAB business conditions improved to a 9-year high level in July


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 0.4% against the USD and closed at 0.791.

LME Copper prices rose 0.05% or $3.0/MT to $6333.0/MT. Aluminium prices rose 1.6% or $30.0/MT to $1920.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.793, with the AUD trading 0.25% higher against the USD from yesterday’s close, following upbeat Australian economic data.

Early morning data showed that Australia’s NAB business conditions index rose to a level of 15.0 in July, hitting its highest level since January 2008, thus suggesting that businesses are growing increasingly optimistic about the nation’s growth prospects. The index had registered a revised reading of 14.0 in the prior month. Moreover, the nation’s NAB business confidence index jumped to a level of 12.0 in July, following a revised reading of 8.0 in the prior month.

Elsewhere in China, Australia’s largest trading partner, trade surplus surprisingly widened to CNY321.2 billion in July, from a revised trade surplus of CNY294.3 billion in the prior month. Market participants had envisaged the nation’s trade surplus to narrow slightly to CNY293.6 billion.

The pair is expected to find support at 0.7904, and a fall through could take it to the next support level of 0.7878. The pair is expected to find its first resistance at 0.7951, and a rise through could take it to the next resistance level of 0.7972.

Going ahead, Australia’s Westpac consumer confidence index for August, slated to release in the early hours tomorrow, will be on investors’ radar.

The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.

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