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NAB Monthly Business Survey: April 2019
Overall, our read of the signal from the business survey is that the surprise jump in conditions last month was unwound this month – with business conditions, confidence and forward orders now all below average (a la February). A key development in the Survey this month was the sharp decline in the employment index to a below average read – the first since late 2016. Future readings of this index should be closely watched as, for the most part, leading indicators of the labour market have remained positive to date but could be expected to decline based on the prior slowing in economic activity. Looking forward, ... (full story)
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AUD/USD remains bid even though NAB Business Confidence falls short
AUD/USD continues to trade in the green near the session high of 06956 despite below-forecast National Australia Bank’s (NAB) business survey. The business confidence index remained unchanged at zero in April, contrary to expectations of an uptick to 1. Meanwhile, conditions index deteriorated to 3 from the March reading of 7. The markets were expecting a reading of 4. The disappointing business surveys will likely put pressure on the Reserve Bank of Australia to cut the interest rates. While the central bank is expected to cut rates twice in the second half of this year, many believe it would do little to boost ... (full story)