FxWirePro: AUD/USD trims NAB-led losses, broad-based USD weakness helps recovery

AUD/USD chart on Trading View used for analysis

• AUD/USD has recovered from session lows at 0.7138 and is currently trading at 0.7162.
   
• The pair earlier slumped lower on the back of poor NAB business conditions data.
   
• Data out of Australia released earlier today showed Australian business conditions for December slumped 9 points to 2, under the long term average of 6. Meanwhile, the business confidence steadied at 3.
   
• The major is extending recovery on the back of broad-based US dollar weakness on expectations of a pause in the Fed’s policy tightening combined with a dovish FOMC decision on Wednesday.
   
• Technical indicators are not conclusive. Upside is limited on rising prospects for an RBA cut which weighs on AUD/USD. 
   
• Upside remains capped at 110-EMA and daily cloud which offer stiff resistance in the 0.7207 to 0.7211 range. Breakout above could see further upside.
   
• On the downside, immediate support is seen at 20-DMA at 0.7145, break below will see some weakness.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.