The Australian dollar has posted gains on Thursday. Currently, AUD/USD is trading at 0.7378, up 0.30% on the day.
Australian business conditions jump
Business conditions rose sharply in the second quarter, according to the NAB Business Survey. Conditions jumped to 32 in Q2, up from 20 beforehand. The survey noted that business conditions rose to a record high, although business confidence eased, from 19 to 17 points. Still, business confidence continues to show strong expansion and is above the long-term average.
The survey reflects the upswing in the economy, which continues to be marked by robust growth. However, the NAB cautioned that the report preceded the current lockdowns in effect, which means that the third-quarter could see a drop in business conditions if the lockdowns are prolonged.
The Australian dollar is coming off a nasty slide, which saw it fall over 2 percent in less than a week. The currency has managed to reverse directions, but with the RBA in a dovish mode and much of the country under lockdown, the Aussie’s upswing could prove to be brief.
Australia wraps up the week with the July PMI reports later today (23:00 GMT). The June releases were strong, as PMIs for both manufacturing (58.6) and services (56.8) were well into expansionary territory. The July numbers are also expected to show strong growth. The 50-level separates contraction from expansion.
In the US, it has been a very light calendar week. On Friday, the US releases PMIs for July, which have been at high levels as the economy fires on all cylinders. In June Manufacturing PMI came in at 62.1 and Services PMI at 64.6, with little change expected in the upcoming release.
AUD/USD Technical
- AUD/USD is testing support 0.7358. Below, there is support at 0.7319
- There is resistance at 0.7469, followed by resistance at 0.7541
