- AUD/USD remains on the defensive near 0.6730.
- NAB’s business confidence fell to 0 index points in September.
AUD/USD continues to trade in the red following the release of the dismal National Bank of Australia (NAB) survey indices for Australian businesses.
Business Confidence edged 1pt lower to 0 index points, the threshold between improving and deteriorating confidence in the aggregate. It remains below its long-run average of +6 index points, the official report said.
Meanwhile, Business Conditions rose 1pt in September to +2 index points but remained below the long-run average of +6 index points.
While the sixth consecutive below-average reading on the Business Conditions shows continued weakness in the business sector, the trend weakening since mid-2018 has slowed. That said, forward indicators remain mixed, but overall suggest that conditions are likely to continue a below-average trend, according to NAB.
The AUD/USD pair, therefore, may come under pressure during the day ahead. So far, however, the NAB data has failed to move the needle on the AUD/USD pair, leaving it largely unaffected at 0.6729 – down 0.05% on the day.
The daily chart shows the bounce from Oct. 2’s low of 0.6771 has ended up creating a bearish lower high at 0.6774 on Oct. 4. Hence, the path of least resistance appears to be on the downside.
Technical levels
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