The Australian Dollar edged higher against the Pound and climbed above a six-week high against the US Dollar after the release of positive data from China and as it continues to benefit from a post election rise.
According to the National Australian Bank’s monthly survey Business confidence in August climbed to its strongest level since May 2011 after the Conservative Liberal-National coalition won the weekend’s Federal election. Tony Abbot’s victory was the outcome many economists had been hoping for. The coalition managed to win by a landslide and ended six years of Labour Party rule.
The confidence Index rose to +6 in August, the highest improvement in more than two years, up from the -3 recorded in July.
The ‘Aussie’ also received support from stronger than expected data releases out of its biggest trading partner, China. Chinese industrial production jumped by 10.4% beating expectation s of a 9.9% increase. Year by year retail sales data also defied expectations by coming in at 13.4%, beating the forecast for a 13.2% improvement.
On Thursday all eyes will be on Australian employment data for August. Unemployment is forecast to rise over the next years and the pace of the increase will set the agenda for interest rates. The Reserve Bank of Australia has already cut interest rates by 200 basis points since November 2011 as a mining boom fades quickly. Traders are taking bets that there is a 63% chance that the Central Bank will keep rates unchanged for the rest of the year.
Current Australian Dollar (AUD) Exchange Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9251 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6979
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4327>
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6965 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8672 <
Correct as of 09:55 am GMT
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