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Forex - Aussie down sharply as NAB July survey downbeat

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Investing.com -

Investing.com - The Australian dollar fell sharply on Tuesday after a downbeat business survey with investors mulling anew the prospect of a Federal Reserve rate hike as early as September.

The NAB business confidence survey for July in Australia showed a plus-4, down from plus-8 in June on business confidence and to plus-6, from plus-10 on conditions with the outlook for employment weighing.

AUD/USD traded at 0.0.7366, down 0.62%, while USD/JPY changed hands at 124.84, up 0.17%. EUR/USD held weaker at 1.1004, down 0.14%.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, rose 0.13% at 97.36.

Overnight, the dollar slipped lower against the other major currencies in quiet trade on Monday, but remained supported as Friday's upbeat U.S. employment data fuelled further expectations for a U.S. rate hike.

Trading volumes were expected to remain light with no major U.S. data to be released throughout the day.

The Labor Department reported on Friday that the U.S. economy added 215,000 jobs last month, slightly lower than forecasts for an increase of 223,000, but still consistent with strong employment growth.

The unemployment rate remained unchanged at 5.3%, in line with expectations.

Hourly earnings, a component of the jobs report that the Federal Reserve has said must rise, ticked up 0.2%, also matching forecasts after stalling in the previous month.

The data was seen as reinforcing expectations for higher U.S. interest rates.

In the past three months the greenback has been boosted by investor expectations that the Fed will raise short term interest rates in the coming months. But Fed governor Stanley Fischer on Monday said there was no certainty on timing and any decision is data dependent.

The euro found some support amid reports that negotiations between Greece and its international creditors over a new bailout deal worth €86 billion should conclude by early Tuesday.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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