The Australian dollar bounced against its US peer following the earlier decline but fell against the Japanese yen. Fundamentals were a bit mixed, and that explains the mixed performance of the currency.
According the Monthly Business Survey published by National Australia Bank, the business confidence index was at 4 in July, little changed from the June’s value of 5. The report said:
Business sentiment has shown great resilience to external shocks in the July NAB Monthly Business Survey, with firms choosing to remain focussed on the positive trends within their own business.
But the NAB also predicted that the Reserve Bank of Australia is going to cut interest rates even more:
We do expect the RBA will react by providing further support. This will include two more 25bp cuts in May and August 2017 (to a new low of 1%).
AUD/USD opened at 0.7649, fell to 0.7621 intraday but rebounded to trade at 0.7664 as of 14:00 GMT today. At the same time, AUD/JPY edged down from 78.35 to 78.20.
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