The Australian Dollar strengthened against the Pound and edged higher against many of its most traded peers after business confidence soared to a three-and-a-half year high in September.
The data compiled by the National Australia Bank (NAB) business survey showed that confidence in Australian businesses climbed by 12 points to its highest level since March 2010. The figure smashed August’s reading of 4. Any figure above zero indicates optimism whilst below shows pessimism.
The rise in confidence was being hailed as the outcome of the Federal Elections which saw Tony Abbot win to become Prime Minister. The data will be a boost to Abbot who named himself as the ‘pro-business’ candidate.
“The federal election result appears to have helped confidence. Low borrowing rates, rising consumer sentiment and a low Australian Dollar may have also helped. Also better news from China probably helped sentiment in mining. The confidence survey may be the first portents of stronger growth in the Australian economy” NAB said in a statement.
A separate data report also showed a slight improvement in Australia’s employment outlook as job advertisements in the country rose by 0.2% in September compare to the 2% decline recorded in August. The data suggest that the nation’s midyear slump could be coming to an end.
Adding further support to the Australian Dollar was the release of positive data out of Australia’s biggest trading partner, China. The Asian nation’s latest Services PMI data showed a slight dip to 52.4 from August’s reading of 52.8, but remained well above the 50 mark that indicates expansion.
Current Australian Dollar (AUD) Exchange Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9445 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6960 >
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1388 >
The Australian Dollar/ Pound Sterling Exchange Rate is currently in the region of: 0.5885 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4366 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6991 <
The US Dollar/ Australian Dollar Exchange Rate is currently in the region of: 1.0586 <
Correct as of 10:00 am GMT
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