AUD/USD Current price: 0.7610
- Australian business sentiment deteriorated in May according to NAB.
- US inflation needs to diverge sharply to actually affect the pair today.
Improved market's mood helped the Aussie erase its early losses against the greenback, triggered by disappointing local data. The AUD NAB's Business confidence index plunged to 6 in May, while the Business Conditions index fell to 15, both well below their April figures and missing market's forecast. The AUD/USD pair fell with the news to a daily low of 0.7583, quickly recovering after the Trump-Kim summit spurred confidence within speculative interest. The positive tone in equities is underpinning the pair, and will likely remain on the upside, as long as shares hold on to gains. Upcoming US inflation figures may have little effect on the pair if there's no big divergence in the outcome.
The pair, however, was unable to extend its gains beyond the current 0.7610/20 region, where it has been meeting selling interest ever since the week started. Ahead of US inflation data, the pair is mild bullish in the short term, above a bearish 20 SMA and with technical indicators aiming higher above their midlines, although with limited strength. The pair would need to advance clearly beyond the 0.7625 level to be able to extend its gains up to 0.7660, a major Fibonacci resistance.
Support levels: 0.7565 0.7505 0.7470
Resistance levels: 0.7625 0.7660 0.7700
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