AUD/USD remains bid around 100-DMA despite a pullback in NAB surveys

AUD/USD remains well bid around the 100-DMA level of 0.7556 despite the pullback in the NAB business conditions and the confidence index from the multi-year highs.

Australia's NAB business confidence fell to 7 in May vs. 13 last, while business conditions stood at 12 vs. 13 last. The Aussie still remains on the front foot after having staged a nice rebound on Friday and Monday from the 200-DMA support.

Moreover, the recovery in iron ore prices from Friday’s 11-month low of $54.41 is supporting the AUD. Meanwhile, the 10-year treasury yield is having a tough time extending gains above 2.2%. The market seems to have priced-in a 25 basis point June rate hike. Consequently,  there is less incentive to hold the American dollar.

AUD/USD Technical Levels

A break above 0.7567 (June 7 high) would open up upside towards 0.7586 (Apr 24 high) and 0.7610 (Apr 17 high). On the downside, 200-DMA of 0.7531, if breached, could yield a pullback to 0.7496 (10-DMA) and 0.7480 (50-DMA).