AUD/USD remains bid even though NAB Business Confidence falls short

• AUD/USD is reporting moderate gains at press time, despite disappointing Aussie business survey data. 
• Trump’s latest comments on discussions with China seem to have put a bid under the Aussie dollar. 

AUD/USD continues to trade in the green near the session high of 06956 despite below-forecast National Australia Bank’s (NAB) business survey. 

The business confidence index remained unchanged at zero in April, contrary to expectations of an uptick to 1. Meanwhile, conditions index deteriorated to 3 from the March reading of 7. The markets were expecting a reading of 4. 

The disappointing business surveys will likely put pressure on the Reserve Bank of Australia to cut the interest rates. While the central bank is expected to cut rates twice in the second half of this year, many believe it would do little to boost business or consumer confidence. 

Also, dovish RBA expectations seem to have been priced in by markets. That is evident from the fact that the AUD has barely shed a pip in response to weaker-than-expected NAB surveys. 

The currency pair found bids near 0.6940 earlier today after the US President Trump said that he feels the trade talks with China will be successful. Trump’s comments have lifted the futures on the S&P 500 by 0.40%. As a result, the AUD/USD may rise further. 

Pivot points