The AUD/USD has had a bit of a bounce this morning led by some better than expected business conditions data.

Conditions rose to 7 points last month up from 3 points in December and confidence was up to 4 points from 3 points in December, according to data from NAB’s Monthly Business Survey released today.

At the same time, housing finance data was worse than expected. With the number of home loans falling 6.1 per cent vs minus 2 per cent expected, while the value of owner-occupied home loans fell 5.3 per cent.

The AUD/USD is marginally higher on the session, with the positive business conditions, being the main driver. Much of the weakness in housing data I suspect would be largely priced in at the moment.

Aussie Outlook

The AUD/USD is still under the major level at 0.7100 and is now only up 0.05% after some selling pressure came back in.

0.7050 and then 0.7000 are my next two key support levels below, with 0.7100 turning into key resistance.

0,7200 is R1 and 0.7300 is R3 and the most recent highs sitting at 0.7400.