NAB said on Tuesday its business confidence index for May climbed four points to seven points, its highest level since August last year. Business conditions also rose, from four index points to seven, as the outlook on trading, profitability and employment improved. NAB warned, however, that the recuperation in conditions was not uniform across all business sectors and a "meaningful recovery in employment remains distant". 

 

"The big picture is still one where the domestic economy is struggling to offset the impact of sharply lower mining investment – as again highlighted in the [first quarter] national accounts," said NAB's chief economist Alan Oster. "While there has been some improvement in recent data, [capital expenditure] expectations in the non-mining sector have weakened, businesses remain reluctant to employ and consumers remain cautious. With future domestic demand still weak, unemployment is expected to rise a touch to around 6.4% by the end of 2015 and remain relatively high for some time," Mr Oster said.

 

After the data, Aussie was initially pushed lower, but immediately rebounded, currently being traded few points below 0.77 handle. Pair is likely to find support around 0.7650 level and resistance above 0.7750 area. Later today, in the US session, JOLTS Job Openings figures are scheduled for a release.