We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bullish
More View more
Real Time News
  • FDA confirms prior commentary from the CDC as an official states "we're on the cusp of a pandemic" #Coronavirus
  • FDA Official says coronavirus is on the cusp of pandemic - BBG
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: US 500: 0.87% Wall Street: 0.81% Germany 30: -0.59% France 40: -0.61% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/pk8P5ZKfem
  • German Health Minister Spahn: - No longer able to track all infection chains - BBG
  • German Health Minister Spahn says Germany at start of coronavirus epidemic $EURUSD
  • "Crude Oil Forecast: Support Bounce in Play as Volatility Fades" -via @DailyFX Crude oil ricochets off the 49.00 handle as the commodity catches bid while coronavirus concerns simmer and an OPEC meeting approaches. Full Analysis: https://www.dailyfx.com/forex/technical/home/analysis/usoil/2020/02/26/crude-oil-forecast-support-bounce-in-play-as-volatility-fades.html #OOTT $USO $CL_F https://t.co/7Xmh4c5ulX
  • RT @EconguyRosie: New home sales up 7.9%. Check. Clothing sales down 3.1%. Check. Utilities output down 4.0%. Check. People away from work…
  • US 1Yr-11Month FRNS Margin at 0.16% Primary Dealers Awarded: 70.1% Indirect Bidders Accepted: 28.6% Direct Bidders Accepted: 1.3% B/C Ratio: 2.49
  • #Gold Price Outlook: $XAUUSD #Coronavirus Breakout Fizzles- $GLD Levels - https://t.co/wAcvpLxyiq https://t.co/EgbHOoWIOM
  • US Treasury Yields: 2-Year: 1.185% 3-Year: 1.160% 5-Year: 1.165% 7-Year: 1.259% 10-Year: 1.337% 30-Year: 1.811% $TNX
Australian Dollar Leaps on Perky NAB Business Snapshot

Australian Dollar Leaps on Perky NAB Business Snapshot

2017-02-14 01:41:00
David Cottle, Analyst
Share:

Talking Points:

  • The Australian Dollar took off on Tuesday on an upbeat business survey
  • The National Australia Bank’s snapshot was resolutely upbeat
  • But are we seeing the old split between a punchy export sector and more depressed internal demand?

The Australian Dollar got a lift against its US cousin on Tuesday thanks to a big rise in business sentiment.

The National Australia Bank’s Business Survey confidence index came in at 10 for January, very much better December’s 6. The survey’s assessment of business conditions shot up to 16. That also trounced the previous month’s score of 10, which in any case had been revised down by a point.

AUD/USD shot up to 0.76560 after the figures, a steep rise from the 0.76440 level it had been loitering around beforehand.

Shot in the arm: AUD/USD

Australian Dollar Leaps on Perky NAB Business Snapshot

Chart Compiled Using TradingView

These numbers provide comfort for those who hope that Australia’s shock growth contraction in the third quarter of 2016 was just a blip, and that the economy has recovered momentum since. The Reserve Bank of Australia subscribes to the view that it has. Indeed it said so again last week in its quarterly Statement on Monetary Policy.

There has been other good news for Australia in recent days, perhaps most notably China’s extraordinary trade numbers which bode very well for the Pacific nation’s vast commodity export machine. However, doubts will probably linger about the disparity between that export sector and the country’s own internal demand. There the picture has been far patchier.

NAB itself said that while the survey points to an improving domestic economy, some caution is warranted. It cited “diverse and rapidly changing seasonal influences” and the timing of China’s Lunar New Year holiday. It also said that utilization rates remained at or below long term averages across most industry groups.

Sure enough, it also said that ongoing weakness in retail conditions raised concerns about the underlying strength of household consumption.

There is also the question of interest rate disparity with the US Dollar. US rates are expected to rise this year, perhaps by as much as 0.75 percentage points. Australian rates by contrast are at record lows and seem likely to remain there.

Have you often wanted to know more about trading the foreign exchange markets? Take a look at the DailyFX Trading Guide.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.