The Australian dollar pulled back at the beginning of today’s trading session as business confidence in Australia worsened last month. The currency has regained its strength as of now and continues to move up.
The business confidence index of the National Australia Bank dropped from -1 in October to -9 in November. The report said:
Signs of trouble ahead with confidence slumping to lowest level since April 2009, with little hint of a pre-Christmas revival.
The outlook did not look optimistic:
Weakness continues into Q4 â path for interest rates now appears even lower, with one more rate cut likely before the middle of next year.
The data led to a sharp drop of the Australian dollar, but the currency managed to recover and is currently trying to rally.
AUD/USD was at 1.0484 as of 9:43 GMT today, following the drop from 1.0486 to 1.0460. AUD/JPY traded near 86.44 after it fell from 86.36 to 86.14 earlier.
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