AUD/USD at day lows, Aus business conditions priced in

FXstreet.com (Barcelona) - The AUD/USD is extending further down, currently printing session lows at 0.9082, after inflation came above expectation in China and the NAB survey showed business conditions deteriorating.

NAB Business conditions downbeat

The most worrisome of all the indicators just released for the interest of the Australian Dollar was the poor reading on business conditions. Stephen Koukoulas, Managing Director of Market Economics, said after the reports: "NAB data suggest RBA will cut in August - jobs data Thursday a key watch too."

According to NAB: "Business conditions and capacity utilisation slump to a four year low. Confidence a little better but still below trend. Conditions very bad in retail, mining and manufacturing, despite low interest rates and falling AUD, though signs a little better for exports. Plenty of spare capacity with little indication of being utilised in the near term; forward orders and employment still very poor."

AUD/USD, Play spikes either side after China CPI

According to Sean Lee, Founder at FXWW, "I don’t think the Chinese CPI will have any lasting effect on financial markets so I’d look to play spikes either side in the AUD/USD. 0.9180/90 should cap any rallies initially whereas if the market turns bearish again, I’d expect .9050/60 to provide solid support."

AUD/USD choppy around 0.91 post-China CPI

The AUD/USD foreign exchange rate is last at 0.9108, off recent levels pre-data at 0.9130, with China CPI coming in higher than expeted at 2.7% y/y vs. 2.5%, and Australia NAB business confidence rising to 0 from previous -1.
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Flash: Next RBA rate cut expected in August - NAB

The domestic economic outlook remains soft, the NAB Economists note, "with the latest NAB survey reported the weakest readings for business conditions & capacity utilisation for more than four years" the Bank said.
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