AUD/USD struggles around day’s high on mixed data, USD weakness
The Australian Dollar (AUD) is on bids near 0.7070 against the US Dollar (USD) ahead of European markets open on Tuesday. The Aussie slid during the early-day release of the business survey but soft greenback, better than prior home data and expectations of a trade deal between the US and China triggered its pullback. Speech from Reserve Bank of Australian (RBA) Deputy Governor Guy Debelle and February month US inflation numbers will be on traders’ radar going forward.
The AUD/USD pair dropped close to 20 pips after the National Bank of Australia (NAB) announced results of its monthly business survey conducted during February. As per the report, business conditions index fell by 3 points to +4 index points versus +5 forecast whereas business confidence index declined to +2 index points from +4 marked previous month.
Elsewhere, the Australian Bureau of Statistics also presented the January month figures of investment lending for homes and home loans. The investment lending for homes dropped less than -4.4% prior to -4.1% while home loans slipped past +1.0% forecast to -2.6% but still remained up from -6.1% prior.
In addition to mixed data at home, recent weakness of the US Dollar following sluggish nonfarm payrolls and a downward revision to previous retail sales numbers also contributed towards AUD/USD stability.
The RBA Deputy Governor Guy Debelle is scheduled to deliver a speech titled "Climate Change and the Economy" at the Center for Policy Development in Sydney. Chances are high that Debelle might be questioned to validate last week's dovish comments from Governor Philip Lowe.
Also on spotlight will be monthly inflation figures from the US. The consumer price index (CPI) is likely to remain unchanged at 1.6% on yearly basis whereas CPI ex-food and energy, also known as Core CPI, may repeat 0.2% and 2.2% figures on MoM and YoY basis respectively.
AUD/USD Technical Analysis
AUD/USD needs to surpass 0.7110 upside barrier in order to aim for 50-day simple moving average (SMA) figure of 0.7135. However, pair’s upside beyond 0.7135 may find it hard to cross 0.7160 resistance-confluence including 100-day SMA and a descending resistance-line stretched since January end.
Meanwhile, 0.7050, 0.7020 and 0.7000 are likely consecutive supports that the please sellers ahead of challenging them with the 0.6980 rest-point.