Aussie Gains on Strong Australian Business Conditions
The Australian Dollar rose in the overnight trading session following the news that Australian business conditions saw improving conditions last month, lifting the index to its highest level in eight years.
A monthly survey by the National Australia Bank of more than 400 companies showed its index of Australian business conditions increased four points to +12 in Month. The rise took the index to its highest level since early 2008.
The latest set of figures appear to strengthen the National Australia Bank’s relatively upbeat outlook for the Australian economy as well as underpinning expectations for monetary policy to stay unchanged for the foreseeable future.
The Reserve Bank of Australia, at its policy review a week ago, kept the cash rate unchanged at a record low 2.0 percent for a 10th consecutive policy meeting, justifying it by using the evidence of continued domestic growth.
The Australian Dollar climbed nearly half a percent against its US counterpart in a busy Asian trading session. At the time of writing, the AUD/USD was up 0.47%, trading at 0.7631.
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