The Australian dollar remained depressed at the start of this week as business confidence worsened, adding to speculations that the central bank will cut interest rates yet again.
The Aussies maintained last week’s drop today after National Australia Bank reported that its business confidence index fell from 2 in March to -2 in April. The bank said:
Business conditions remain very difficult and confidence stumbles after showing signs of recovery earlier this year. Despite less negativity in retail & manufacturing, activity still very poor and labour market showing new signs of weakness.
As for good news that helped the currency to trim the initial drop, home loans grew 5.2 percent in March, more than analysts have anticipated.
AUD/USD traded at 0.9982 as of 13:13 GMT today after falling from 0.9999 to 0.9952, the lowest since June. AUD/JPY went down from 101.86 to 101.60, while its daily low was at 101.16.
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