Trade Desk Thoughts - Australia NAB Business Confidence

Australia NAB Business Confidence Actual -7, Previous -9

Release Explanation: This is a survey of the current state of the business sector in Australia. Based on a survey of hundreds of small to large sized companies, the National Australia Bank delivers monthly and more comprehensive quarterly reports from the gathered data. This comprehensive survey primarily provides insight into the state of the Australian economy and puts forth leading indicators that signal its future direction. The survey's findings, if unexpected, have the power to move markets directly.

Trade Desk Thoughts: The National Australia Bank released the business confidence report this evening. The reading was higher than last month’s reading of -9, coming in a -7. July business conditions were still sharply lower, approaching lows not seen since 2001. Forward orders continue to deteriorate while confidence is at levels seen in 1991. The global and local GDP estimates are still unchanged at 2.75 percent and 2.25 percent as the RBA focuses on redressing an aggressively tight policy.

Forex Technical Reaction: After falling 40 pips from the open, the Australian dollar has spiked up as an initial reaction and is currently sitting at pre-release levels.

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