The Australian dollar, as well as other currencies, came roaring to the upside against the US dollar yesterday as a political deal was made that ends the US government shutdown and raises the debt ceiling. The Aussie fell a little versus the euro and was flat against the Japanese yen. Today, the Australian currency halted the rally despite positive data from China.
The National Bureau of Statistics of China reported that gross domestic product of the Asian nation grew 7.8 percent in the third quarter of 2013, matching forecasts, after expanding 7.5 percent in the second quarter. China is the biggest trading partner of Australia, therefore its economic growth is helpful to the economy of the South Pacific nation.
Yesterday, a Quarterly Business Survey of National Australia Bank Limited was released, showing an increase of the business confidence index from -1 in Q2 of this year to 3 in Q3. The report said:
Businesses become more confident in the September quarter. This fundamentally appears to be driven by political factors â albeit the lower AUD and rates, together with stronger asset markets would have helped. But these factors have not yet boosted business conditions, which tracked lower to the weakest level in four years. Forward indicators remain subdued.
AUD/USD traded at 0.9617 as of 3:21 GMT today after climbing from 0.9549 to 0.9633 yesterday. EUR/AUD ticked up from 1.4190 to 1.4206, while AUD/JPY was near the opening rate of 94.30.
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