Australian Business Confidence Declines in September Despite RBA’s Rate Cuts

According to NAB, business confidence in Australia stagnated in September despite the RBA's decision to cut interest rates.

AUD/USD

According to a recent survey by the National Australia Bank (NAB), business confidence in Australia stagnated in September despite the RBA’s decision to cut interest rates. The NAB business confidence declined to 0 in September from +1 in August.

index touched +2 in September from +1 in August, but still coming in below the average reading of +6 for the sixth consecutive month. Consumer sentiment and growing external risks driven by the US-China trade war and the weakness in global economic growth continue to weigh on Australia’s corporate sector, something the RBA rate cuts are expected to rectify.

A key indicator of domestic demand, forward orders, inched slightly higher to -2 in September from -4 in August, but still remains in the negative territory. On the positive side, the employment index posted a growth from +2 in August to +3 in September.

This news has failed to make much of an impact on AUD/USD which continues to trade steady around 0.6745 at the time of writing.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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