AUD/USD pays a little heed to downbeat Aussie NAB data, focus on China CPI

• AUD/USD remains mildly positive despite weaker than expected Aussie NAB Business Confidence/Conditions.
• Trade sentiment recently recovered on expectations of the US economic package.
• China’s inflation numbers will be in the spotlight, for now, whereas coronavirus headlines, US President Trump’s conference will be the key to follow.

AUD/USD stays 0.02% positive while taking rounds to 0.6590 despite data from National Australia Bank (NAB) marked downbeat prints during Tuesday’s Asian session. The reason could be traced from the market’s risk reset following the heavily sold performance the previous day.

Australia’s February month NAB Business Conditions and Business Confidence slipped below 3 and 0 forecasts to -4 and 0 respectively.

Read: NAB business survey (Feb) falls well below concensus

Even so, the Aussie remains mostly unaffected as the latest comments from the US signaled that the policymakers are preparing for the economic stimulus.

Also increasing the trading sentiment were statements turning down the lack of testing kits in the US labs as well as no cancellations of the Tokyo Olympics.

That said, the US 10-year treasury yields bounce back from the record low, flashed yesterday, to 0.63% whereas S&P 500 Futures gain 1.36% to 2,785 by the time of writing.

Investors will now pay close attention to China’s inflation data for the immediate direction. However, updates concerning the virus will be the key while details of US President Donald Trump’s economic plan to counter COVID-19 will also be important to watch.

Technical Analysis

10-day SMA near 0.6580 offers immediate key support ahead of 0.6500 round-figure. On the contrary, 21-day SMA near 0.6630 can limit the nearby upside of the pair.