Australian Dollar Boosted By Data, Stocks Keep On Recovering
Aussie has been buoyed by positive business condition and confidence numbers. Meanwhile, shares continue to stabilize. DOW increased 410 points (1.7%) to 24601. Japan Nikkei lifted 0.8%. Although Prime Minister Shinzo Abe says he hasn’t decided yet, investors are convinced Haruhiko Kuroda (BoJ Governor) will be nominated for a position of the Governor for the second time. US 10 year yield rose 0.028 to 2.857. Still, it remained bounded under last week’s minimum of 2.884. TNX is heading towards the key resistance of 3.036, suggesting long term trend.
Australia NAB business confidence increased 2 pts to the 9-month maximum of 12 last month. Business condition index was up 6 pts to 19. Luci Ellis (RBA Assistant Governor) stated that wages growth is expected to improve moderately. The Assistant Governor also noted that Australia should catch up with the other major economies and that pick up in inflation will take more time than there. Today’s data marks British Consumer Price Index.