Talking Points:
- The Australian Dollar rose as NAB business confidence, conditions indexes rose from the month prior
- The NAB Business Confidence index is currently one point below the multi-year high of 13 points
- The Business Conditions index rose to 15 index points, its highest level since January of 2008
Check out our analysts 3Q 2017 market forecasts for the Australian dollar on the DailyFX Trading Guides page
The Australian Dollar rose alongside bond yields as the National Australian Bank Business Confidence Index rose to its highest level since May of 2017. The Business Confidence index measures forward looking sentiment from the Australian private sector. The Confidence Index is currently just one index point below its year-to-date high of 13, the highest reading since 2013.
The NAB Business Conditions current index rose to 15 index points, its highest level since January of 2008. The positive outlook in business sentiment comes as the Reserve Bank of Australia has stated they intend to maintain interest rates for the foreseeable future, following two rate cuts this year.
For the week ahead, Australian economic data is sparse until Thursday when consumer inflation expectations will be released. Later that day at 23:30 GMT, the RBA’s Governor Philip Lowe will be appearing before the House Economic Committee in Melbourne to discuss current economic conditions from the central bank’s perspective. Rate hike expectations are currently not pricing in any hikes for the next 12 months.
