The Australian dollar rallied against its US peer and erased losses versus the Japanese yen today with help of rather positive domestic business confidence and good economic data from China.
The business confidence index of National Australia Bank remained unchanged in May. The report commented on this:
That result was surprising, with firmâs still discounting persistently soft levels of business conditions and the negative sentiment surrounding the Federal budget â including the post-budget collapse in consumer confidence.
Other Australian reports were not as good, with no growth in the number of home loans in April (even though analysts predicted an increase by 0.3 percent) and the drop of job advertisements. The Aussie was still able to make a move higher with support of positive data from China, biggest Australia’s trading partner.
AUD/USD went up from 0.9275 to 0.9295 as of 16:07 GMT today after falling to 0.9257 earlier. AUD/JPY near the opening level of 92.29 following the drop to 94.94.
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