Forex Marketz Daily Forex News – Fully Markets Update
The Australian dollar, specifically the AUD/USD Forex market, rose this morning. The Aussie dollar tracked rising front end Australian government yields higher after the corporate lender, the National Australian Bank (NAB) released data that showed that the bank’s Bank Business Confidence Index rose to its highest level since May of 2017. The business confidence index is a forward looking indicator of sentiment from the Australian private sector. The business confidence index is just one index point below its year to date high of 13. This is the highest reading since 2013.
In other data, the NAB Business Conditions current index rose to 15 index points. This is that index’s highest level since January of 2008. The positive outlook in business sentiment comes after the Reserve Bank of Australia has made it clear, to investors that they intend to maintain interest rates at record lows for the foreseeable future. The RBA has slashed the official cash rate (OCR) two times this year.
Australian Economic Calendar this Week
Looking at the rest of this week’s Australian economic calendar, things are quiet until Thursday. The Down Under will release consumer inflation expectations. Later on Thursday at 11:30 pm GMT, the Reserve Bank of Australia (RBA) Governor Philip Lowe speak before the House Economic Committee in Melbourne. He is slated to discuss current economic conditions from the central bank’s perspective.
Rate hike expectations are currently not pricing in any OCR hikes for the next year to 18 months.
It should be noted that the AUD currency unit shrugged off trade data released by China this morning. This data sent many of the regional stock bourses lower.
