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Forex - Aussie rebounds on NAB survey pointing to business recovery

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Investing.com -

Investing.com - The Australian dollar rose on Tuesday after a closely watched business survey hinted at recovery among businesses.

AUD/USD traded at 0.7612, up 0.30%, while USD/JPY changed hands at 119.94, down 0.16%. EUR/USD was quoted at 1.0569, up 0.02%.

The NAB Business Confidence & Business Conditions survey for Australia saw conditions at plus-6 in March from plus-2 in February and confidence at plus-3, from flat in February.

The Reserve Bank of Australia will note the rise in capex intentions in the NAB survey has a higher weighting for non-mining investments.

Elsewhere, the Monetary Authority of Singapore on Tuesday said it will keep its current monetary policy stance unchanged, allowing a further "modest and gradual appreciation," of the Singapore dollar as growth and inflation appear to be heading in the direction expected.

The decision was a bit of a surprise to many analysts who had expected the MAS to announce its second policy easing in as little as three months.

Elsewhere, central bank decision is due in Indonesia around 1530 Jakarta time (0630 GMT).

From China data releases this morning are possible for first quarter forex reserves and new loans and money supply.

Overnight, the dollar pared gains against a basket of other major currencies in thing trade on Monday, but remained supported by growing expectations for a U.S. rate hike in the coming months.

Demand for the dollar remained supported by expectations for higher interest rates, as investors regained confidence that the U.S. economy would continue to recover after recent economic reports pointed to a slowdown at the start of the year.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was quoted at 99.74, flat.

Sentiment on the euro remained vulnerable amid ongoing uncertainty over Greece's bailout. Talks between Athens and its lenders on proposed economic reforms were expected to resume later Monday, ahead of a meeting of euro area finance ministers on April 24.

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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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