The Aussie has been hosed today.
Having fallen by more than one percent on Monday, the Australian dollar has continued to slide during Asian trade on Tuesday.
As at 4pm AEDT, the AUD/USD currently buys .7227, down a further 0.52% on New York’s closing level.
The slide in the Aussie came despite a strong lift in Australian business confidence last month along with a smaller-than-expected decline in Chinese imports in November.
Pointing to a strengthening recovery across Australia’s non-mining sectors, the NAB’s business confidence index rose 2 points to +5 in November. The survey’s separate business conditions index, at +10, also held well above its long-run average of +5.
NAB group chief economist Alan Oster described the report “as another strong result”, suggesting that Australian’s “can put more faith in the building non-mining sector recovery.”
Alongside the robust Australian business survey for November, Chinese trade data for November came slightly ahead of expectations with a smaller-than-expected decline in imports helping to offset a miss on exports.
From a year earlier imports fell by 8.7%, ahead of the 18.8% contraction recorded in October and expectations for a decline of 12.6%. Exports declined by 6.8% over the same time period, a slight narrowing on the 6.9% contraction seen previously but below expectations for a fall of 5.0%.
While mixed, the data suggests that demand for Chinese imports and exports is improving, albeit off very weak levels.
Despite the two data prints, the Aussie has remained under the pump, possibly weighed down by significant falls in the iron ore and crude oil price overnight. Both commodities fell to multiyear lows, heaping pressure on commodity currencies, particularly the Aussie.
Looking ahead to trade this evening, markets will get a raft of revised GDP figures from Europe along with the JOLTS job survey and NFIB small business survey from the US.
Here’s the current Aussie dollar scoreboard, as at 4pm AEDT.
- AUD/USD 0.7227 , -0.0038 , -0.52%
- AUD/JPY 88.96 , -0.67 , -0.75%
- AUD/CNY 4.6372 , -0.0183 , -0.39%
- AUD/EUR 0.6662 , -0.0043 , -0.64%
- AUD/GBP 0.4804 , -0.0022 , -0.46%
- AUD/NZD 1.0899 , -0.0026 , -0.24%