AUD/USD little moved after NAB release, AU-US yield differential reaches zero

• Upbeat NAB survey fails to boost the Aussie dollar. 
• Upside possibly capped by the drop in 10-year bond yield spread to zero. 
• Also, signs of moderate risk aversion in S&P 500 futures could be keeping Aussie gains under check. 

The uptick in the Aussie business confidence numbers failed to boost demand for the Aussie dollar, leaving the AUD/USD pair flatlined above 0.7848 (23.6% Fib R of Jan. 26 high - Feb. 9 low).

As of writing, the Aussie dollar is changing hands at 0.7855 levels - up 1.2 percent from the Feb. 9 low of 0.7756. 

The NAB reported January business confidence index at a 9-month high. Further, it reiterated its view that RBA will likely hike rates in the second half of this year if the labor market continues to strengthen and wage growth picks up the pace. However, it also added a line this month stating that the central bank "move later as it has indicated that it is in no rush to lift rates."

This, coupled with the narrowing 10-year AU-US yield spread could be capping the upside in the Aussie dollar. The spread has reached zero and could drop into the negative if US CPI (due tomorrow) betters estimates. 

AUD/USD Technical Levels

FXStreet Analyst Yohay Elam writes, "The RSI is still in selling territory, below 50%. However, the AUD/USD has climbed back above the 50-day Simple Moving Average. All in all, the picture is mixed."

"On the upside, 0.7880 capped the pair in early January and is the next level of resistance. It is followed by 0.7960, the swing low from that month as well. Further above, 0.8130 remains a healthy level of resistance."

"On the downside, 0.7807 was the previous 2018 low and serves as a weak support line. The swing low of 0.7960 seen on Friday is the next line to watch. Lower, 0.7650 capped the pair late in 2017 and the last line to watch is 0.75."