The Australian dollar has edged lower on Tuesday, as AUD/USD trades in the mid-0.87 line in the European session. The currency started off the week in fine fashion, gaining almost 100 points on Monday. In economic news, Australian NAB Business Confidence dropped to 5 points in September. Later in the day, we’ll get a look at Westpac Consumer Sentiment. In the US, there was just one release, as NFIB Small Business Index missed the estimate.
Australian NAB Business Confidence continues to slip, falling to 5 points in September release. This was the key indicator’s weakest showing since March. Weak business confidence could translate into decreased spending and hiring by the private sector, which would be very bad news for the economy and could hurt the Australian dollar.
•AUD/USD posted gains in the Asian session, breaking above resistance at 0.8763. The pair then retracted, and has remained steady in the European and North American sessions.
•On the upside, 0.8763 was breached earlier but recovered. It remains a weak line. There is stronger resistance at 0.8220.
•0.8668 is providing support.
•Current range: 0.8668 to 0.8763