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Aussie unchanged despite poor Business Confidence survey

AUD - Australian Dollar

The Australian Dollar managed to hold its ground despite a missed day on the economic calendar, opening this morning at a healthy 0.6862. While relatively unchanged from yesterday’s open, the Aussie did drop marginally on the back of a poor NAB Business Confidence Survey which saw the RBA’s rate cuts and the Governments tax cuts do little for business confidence. Business Confidence fell from 3 points to 1 point, its lowest level since September 2014. While under pressure, the Aussie did see some support from its Northern neighbours with Chinese inflation data surprising to the upside. The positive result balanced the weaker Business Confidence survey and saw the Aussie relatively unchanged despite some jitters in between.

Moving into Wednesday, the Aussie now turns to Westpac’s consumer sentiment reading for local direction while also keeping an eye on the Chinese new loans report and US PPI.

Key Movers

Foreign exchange markets have been fairly muted over the last 24 hours but there was some movement with the Japanese Yen. The Yen hit its highest level in a month as it tracked the rise in US treasury yields. Hitting as high as 107.5 against the Greenback, the Yen continues to be a favoured safe haven currency.

Otherwise, global bond yields have continued they’re good form after an MNI report that suggested the ECB might delay or make conditional the resumption of quantitative easing. There was also some positive news on the US-China trade war that also supported rates with reports that China has offered to buy more US agricultural goods ahead of the October trade talks.

Expected Ranges

AUD/CAD: 0.8981 - 0.9047 ▼

AUD/EUR: 0.6171 - 0.6245 ▲

GBP/AUD: 1.7966 - 1.8049 ▲

AUD/NZD: 1.0639 - 1.0724 ▲

AUD/USD: 0.6829 - 0.6899 ▲