The Australian dollar is holding above 0.7515 as traders remain bullish on the back of a small lift in iron ore and coal prices.
“Though the US dollar is still struggling a bit, it is stable and that is keeping Aussie dollar buyers at bay,” said Greg McKenna, chief market strategist at CFD and FX provider AxiTrader.
He added: “It’s also true that the data flow out of Australia has continued to confound the doomsayers on the economy which has been an important bull point for the Aussie dollar.”
The release of the NAB Business Survey today may give an indication of the prevailing sentiment across the business sector.
McKenna said: “it will be interesting to see if the business sector is as upbeat as the April survey showed with confidence and conditions up at or near post-GFC highs.”
According to McKenna, the NAB survey is a useful indicator of how things are actually doing in the economy and what the outlook is and then goes into the granular detail of how trading, profitability, orders, employment and so on are tracking.
“It gives a good read on economic activity. I also use it an indicator of what employees will be hearing from their managers and the businesses they work in,”
In the meantime, the British pound is under pressure again this morning against the US dollar, Euro and many pound crosses.
“The pressure on the pound is likely to remain as uncertainty grows. There’s even talk of the Queens speech next Monday being postponed while the government sorts itself out,” McKenna said.
He added: “If you look at it, there’s more chat from Brexit Minister David Davis that the UK’s position hasn’t changed on the talks. And the EU negotiator, Michel Barnier, was telling the UK to get on with it. All these are adding to an extremely uncertain outlook for the Pound.”
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