With US markets closed for a national holiday, the Australian Dollar to US Dollar (AUD/USD) exchange rate was able to advance by over 0.5% on Tuesday.
During the Australasian session the ‘Aussie’ was bolstered by an impressive increase in domestic business conditions.
The National Australia Bank’s index if business conditions leapt from just 1 point in September to 13 points in October – marking the most significant month-on-month increase for over 15 years.
The report saw one currency strategist comment; ‘It was a staggering rise. It’s so big you wonder if it’s exaggerated, but it was enough to lift the Aussie from its lows and since then, it’s tracked fairly nicely.’
Although other Australian data was less impressive, with the NAB gauge of business confidence falling from 5 to 4, a quiet news day kept the Australian Dollar trending higher against the US Dollar.
The ‘Greenback’ was little changed after the US NFIB Small Business Optimism index advanced from 95.3 to 96.1, beating expectations for a reading of 96.0.
The Australian Dollar to US Dollar (AUD/USD) exchange rate achieved a high of 0.8977.
Following the publication of a better-than-expected UK Like-for-Like sales report the Australian Dollar to Pound Sterling exchange rate softened slightly.
The Pound gained across the board as like-for-like sales (which were expected to have declined by -0.5% on the year in October) were actually shown to have stagnated.
The AUD/GBP exchange rate brushed a low of 0.5420 during the local session.
However, the Australian Dollar recouped losses against its British rival ahead of the publication of the week’s most influential UK reports.
The UK is scheduled to release its latest batch of employment stats on Wednesday.
It is expected that the nation added 125,000 positions in the three months to September, a strong employment gain which would take the jobless rate to a fresh six-year low of 5.9%.
However, these reports are unlikely to give Sterling a boost unless average earnings are also shown to have increased.
The Bank of England’s inflation report could also put downward pressure on the Pound.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending in the region of 0.5448.
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