AUD/USD faces pressure as Australian business conditions hit 4.5-year low

AUD/USD is experiencing downward pressure following disappointing Australian business data, with the pair trading near 0.6650 in early Asian trading. The NAB Business Conditions Index plummeted to 0 in May from +2 in April, marking a 4.5-year low and signaling deteriorating economic conditions. While business confidence improved slightly to +2 from -1, the sharp decline in business conditions raises concerns about Australia's economic momentum. The sales index remained positive at +5, providing limited support. This weak data increases the likelihood of the Reserve Bank of Australia maintaining its current stance or potentially considering future rate cuts if conditions worsen. Technical indicators show immediate support at 0.6630, with resistance at 0.6680. Traders should monitor upcoming Australian employment data and Chinese economic indicators, as both significantly influence AUD direction. The deteriorating business environment suggests continued headwinds for the Australian dollar.