AUD/USD remains on the defensive after mixed NAB data

• Australia's business confidence declined in June. 
• Business conditions index ticked higher as expected. 
• AUD/USD remains in the red after the key data release.
• A rise in iron ore fails to lift AUD. 

The already weak AUD/USD has extended losses following the release of the National Bank of Australia's survey data. 

Australia's business confidence index fell to 2 in June as expected from May's print of 7. Meanwhile, the conditions index ticked higher to 3 from May's figure of 1. 

The Reserve Bank of Australia (RBA) cut rates by 25 basis points to a record low of 1.25% in June. The move, however, failed to boost business confidence, as indicated by the NAB data. The business conditions, however, improved, but so far, that has failed to put a bid under the AUD. 

In fact, the Australian currency is flashing red despite the rise in iron ore prices - one of Australia's top exports. As tweeted by @YuanTalks, iron ore futures in China have extended gains to 5% this Tuesday morning. 

The weakness in the AUD/USD pair could be associated with Friday's upbeat US non-farm payrolls release and the drop in the odds of aggressive rate cuts by the US Federal Reserve. 

As of writing, the AUD/USD pair is trading at 0.6960, having hit a high of 0.6975 earlier today. 

Pivot points