FxWirePro: AUD/USD Trades Rangebound in the Asian Session, Momentum Higher
- The latest NAB confidence gauge showed both a resilient non-mining recovery and an outlook that has continued to improve, although the confidence figures matched estimates.
- National Australia Bank Q1 business confidence came in at 4 (prior 5, revised from 4), while conditions stood at 9 versus prior 10, conditions for next 3 months increased to 15 from 13 last.
- Upbeat sentiment around the Asian equities is also likely to support the higher-yielding currency AUD. Higher US equities provided fresh impetus to the region’s indices.
- AUD/USD has broken channel top and remains rangebound on the day. The pair finds solid support by 5-DMA at 0.7775.
- Momentum on daily and weekly charts remains higher. Upside could see test of 0.7830/40/50.
- Immediate support lies at 0.7775 (5-DMA), while resistance is located at 0.7826 (April 19th highs).
- Next on tap for the pair will be US weekly jobless claims and Philly Fed manufacturing index due for release in the NY session.