AUD/USD remains comatose around 0.81 after NAB release
- AUD/USD flatlined below 0.81 levels.
- NAB business conditions and confidence rose less-than-expected in December.
- Eyes Aussie CPI release
AUD/USD finds no takers following the release of the Aussie NAB business confidence and conditions index.
The currency pair is flat lined just below 0.81 levels and looks heavy if we take into account the weak follow through (previous day's price action) to Friday's bullish outside day candle.
The NAB reported the December business confidence index at the 5-month high of +11 index points. The uptick puts an end to the downward trend that had been apparent since around mid-2017, says official report. Also, the business conditions index rose to 13 index points - reading well above the long-term average of +5 index points.
Further, the NAB maintained its view that the first RBA hike will likely happen in the second half of this year if labor market and wages improve further and the property market holds steady.
Still, the Aussie is not impressed, seemingly due to the overbought technical conditions and caution ahead of the Aussie CPI release (due tomorrow at 00:30 GMT).
AUD/USD Technical Levels
As of writing, the currency pair is trading at 0.8092 levels. FXStreet Chief Analyst Valeria Bednarik writes, "from a technical point of view, the 4 hours chart shows that the price has spent the last couple of sessions in consolidative mode, holding above its 20 SMA that anyway has lost its bullish strength. In the same chart, the Momentum indicator turned back south, now pressuring its mid-line, while the RSI indicator post a neutral-to-bearish stance around 56, suggesting that the pair may well correct further lower short-term, without hurting the dominant bullish trend.
Support levels: 0.8070 0.8040 0.8000
Resistance levels: 0.8130 0.8160 0.8200