Investing.com - The Australian dollar weakened further on Tuesday in Asian trade as a National Australia Bank survey of business confidence and conditions for October indicated that a persistently high exchange rate is acting as a drag on business prospects.
AUD/USD weakened to 0.9334, down 0.28%, and traded in a range of 0.9326 - 0.9390, after the NAB survey showed conditions fell back from a 3.5-year high in October to +5 from +12 for a leading indicator closely watched by the Reserve Bank of Australia to assess the economy.
The survey raised anew the prospects for the RBA to cut its official cash rate further from a record low 2.5% in the coming months after warning earlier this month that the exchange rate was "unacceptably high." Citibank cautioned that the survey was only one piece of the puzzle on confidence and that expectations of another interest rate cut soon may be premature.
"We expect that the previous cut to official interest rates still has legs and that activity data should respond to policy stimulus in the future," Citibank said in a client note. "As such, today's data should not be a shock for the RBA, who had previously warned that 'there has been an improvement in indicators of household and business sentiment recently, though it is too
soon to judge how persistent this will be."
Westpac-Melbourne Institute releases a consumer confidence survey on Wednesday that is expected to amplify the debate on sentiment.
USD/JPY traded at 99.57, up 0.42%, in a range of 99.11 - 99.60, on resumed strength in the Asian trading day after investors overnight locked in gains from Friday's surprisingly strong October jobs report and sold the unit for profits.
On Friday, the Bureau of Labor Statistics reported that the U.S. economy added 204,000 jobs in October, far surpassing expectations for a 125,000 increase.
In Asia, attention was focused on any details from a meeting of senior Chinese leaders setting economic and social policies for the next decade, which is set to end Tuesday. A key outcome of the meeting for markets would be any timetable for full convertibility of the yuan.
On the Japanese data from for Tuesday is the October consumer confidence survey at 1400 local time (0500 GMT) expected to show a reading of 46.3, up from 45.4 in September.
EUR/USD held steady at 1.3399, in a narrow 1.3390 - 1.3414 range, in Asian trade.
AUD/USD weakened to 0.9334, down 0.28%, and traded in a range of 0.9326 - 0.9390, after the NAB survey showed conditions fell back from a 3.5-year high in October to +5 from +12 for a leading indicator closely watched by the Reserve Bank of Australia to assess the economy.
The survey raised anew the prospects for the RBA to cut its official cash rate further from a record low 2.5% in the coming months after warning earlier this month that the exchange rate was "unacceptably high." Citibank cautioned that the survey was only one piece of the puzzle on confidence and that expectations of another interest rate cut soon may be premature.
"We expect that the previous cut to official interest rates still has legs and that activity data should respond to policy stimulus in the future," Citibank said in a client note. "As such, today's data should not be a shock for the RBA, who had previously warned that 'there has been an improvement in indicators of household and business sentiment recently, though it is too
soon to judge how persistent this will be."
Westpac-Melbourne Institute releases a consumer confidence survey on Wednesday that is expected to amplify the debate on sentiment.
USD/JPY traded at 99.57, up 0.42%, in a range of 99.11 - 99.60, on resumed strength in the Asian trading day after investors overnight locked in gains from Friday's surprisingly strong October jobs report and sold the unit for profits.
On Friday, the Bureau of Labor Statistics reported that the U.S. economy added 204,000 jobs in October, far surpassing expectations for a 125,000 increase.
In Asia, attention was focused on any details from a meeting of senior Chinese leaders setting economic and social policies for the next decade, which is set to end Tuesday. A key outcome of the meeting for markets would be any timetable for full convertibility of the yuan.
On the Japanese data from for Tuesday is the October consumer confidence survey at 1400 local time (0500 GMT) expected to show a reading of 46.3, up from 45.4 in September.
EUR/USD held steady at 1.3399, in a narrow 1.3390 - 1.3414 range, in Asian trade.