Australian Dollar Withstands Negative Fundamentals

The Australian dollar has been able to withstand negative impact from negative economic reports released over Tuesday both from Australia and from abroad. The currency was flat versus the US dollar and gained on the euro.

The National Australia Bank reported that the business confidence index slipped from 5 to 2 in October. As for news from overseas, China’s consumer inflation slowed last month more than had been anticipated by analysts while producer prices remained in deflation. Yet the Aussie held its ground despite all the negative data, unwilling to move down after opening sharply lower on Monday.

AUD/USD traded at 0.7048 as of 13:28 GMT today after opening at 0.7043 and rising to 0.7064. EUR/AUD dropped from 1.5246 to 1.5183.

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