Despite the release of declining business confidence data the Australian Dollar is trading slightly higher against Sterling and the US Dollar as the currency continues to find support from commodity prices.
In the early part of Tuesday’s session, Australian business confidence tumbled to an eight-month low and the country’s treasury predicted a budget deficit. With upcoming elections the market is volatile regarding the ‘Aussie’.
According to National Australia Bank Ltd the confidence index for July fell to -3 and sentiment remains extremely poor in the key mining sector as the weaker currency and interest rate cuts failed to give businesses confidence. The result is the worst recorded since November 2012.
The Treasury meanwhile revealed that it expects the country to have a budget deficit of 30.1 billion Australian Dollars in the year to June 30th as unemployment rises and the economy slows.
The sour mood among businesses was one reason the Reserve Bank of Australia (RBA) cut its cash rate to an historic low of 2.5 per cent last week. Investors think at least one more rate cut will be necessary to support activity as a long boom in mining investment finally crests.
The Australian Dollar reversed its earlier losses after commodity prices increased. The value of Copper was heading for its highest level since June and Gold is trading just below a three-week high. Oil prices have also seen an increase. The rises come as the economies of the USA and Eurozone improve.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9128
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6869
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5904
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1420
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0954
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4557
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6935
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8756
Correct as of 11:30 am GMT
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