Global macro overview for 26/01/2016:
The NAB Business Confidence index data was released overnight in Australia and the figures remained strong in December. Despite the recent market sell-off, the business confidence declined only slightly from 5 in November to 3 in December. The data reflects that the sentiment among the Australian firms remains positive and it is in line with the expectations of the Australian policy makers: the non-mining recovery remains on track. In such a situation. the Reserve Bank of Australia should not cut the interest rate in the near future.
Now let us take a look at the technical picture of AUD/USD. After a recent sell-off at the end of the year, the double-bottom pattern has been made, making the level of 0.6826 important long-term support. Currently, the AUD/USD pair is trying to climb higher and break above near-term resistance at the level of 0.7470. Next support is seen at the level of 0.6918.