AUD/USD @ 0.6752 New-Trade: : Eyes 3-month lows as Australia’s Business Confidence drops to lowest since mid-2013


AUD/USD currently trading at 0.6752

  • AUD/USD risks printing multi-month lows below 0.6750 on weak data. 
  • Australia's Business Confidence dropped to multi-year lows in December. 
  • Coronavirus scale is likely to keep the AUD on the defensive. 

AUD/USD looks set to print a 3.5-month low below 0.6750 with Australia's business confidence gauge hitting multi-year lows. 

The currency pair is currently trading at 0.6753, representing marginal losses on the day, having hit a high of 0.6762 a few minutes before press time. 

National Australia Bank's (NAB) Business Confidence weakened in December, falling 2pts to -2 index points, the lowest read since mid-2013. Meanwhile, Conditions edged 1pt lower in the month to +3 index points – another below-average result and one that is well below the level seen in early 2018, according to the official report.

Business Confidence was seen rising to 1 from November's 0 reading, while Conditions was forecasted to drop to 3 from November's reading of 4. The US-China trade tensions ebbed significantly in the final months of 2019, even so, Australia's Business Confidence fell into the negative, possibly because the nation battled devastating bushfires in the final month of the year. 

A sustained drop in the Business Confidence may force the Reserve Bank of Australia to take aggressive easing measures. Currently, the central bank is expected to keep rates unchanged at the Feb. 4 meeting and cut rates by 25 basis points in April. 

Even so, AUD/USD may continue trade on the defensive during the day ahead, courtest of growing fears that China is struggling to contain the deadly coronavirus. 

Technical levels

5-Min charts

Please find Mehabe Five Minute, Hourly, Daily and Weekly charts, analysis and potential trades. The below section is for registered PRO members of Register. Please register free.

PRO Membership
FREE REGISTER is a high performance niche managed Account for retail MT4 clients. If you would like the same guaranteed performance on your account, please Contact Us

Follow us on Twitter for updates: Twitter Follow


Please enter your comment!
Please enter your name here

Leave the field below empty!