Business conditions in Australia are improving, AUD is unaffected
Trade Terms Across Australia are on the rise as the country eases COVID-19 restrictions and reopens its economy, particularly in Sydney and Melbourne. The latest National Australia Bank (NAB) survey shows an improvement in its business conditions index from 10 in October to 12 in November, well above average levels.
The rise in the overall index was fueled by a strong improvement in employment, with its sub-index rising from 6 in October to a high of 11. The sales index rose from 15 to 16 while profitability rose. remained stable at 8 throughout the month. November.
Business capacity utilization rates across Australia also rose sharply to 83.2%, indicating a strong possibility of higher investments to increase production levels in the future. On another positive note, the Futures Orders index also remained stable at a high level of 14.
According to NAB Chief Economist Alan Oster, âOverall, these results indicate that a strong recovery is underway. Things can get even better in the coming months, especially in recreation and personal services which was still in negative territory in November despite many restrictions eased during the month. “
Impact on the Australian dollar
The positive economic data has not led to positive action on AUD prices, as traders rush into the US dollar ahead of the Fed’s next meeting this week. At the time of writing, AUD / USD is trading around $ 0.709.
AUD / USD
The risk-sensitive Australian dollar was also beaten by reports of the UK’s first death from the Omicron variant. This has again raised concerns about the latest variant of COVID-19 and how it could potentially derail the economic recovery globally.