The Australian dollar strengthened against the other major currencies in the Asian session on Tuesday, as the results of a business survey by the National Australia Bank showed that business confidence hit nearly a 2-year high in June.
Data from the National Australia Bank showed that the business confidence in Australia improved in June, with the corresponding index coming in with a score of +10. It was up from the upwardly revised +8 in May, and marked the highest reading since September 2013.
The index for business conditions also advanced in June, climbing to a score of +11. That’s up from the downwardly revised +6 in May, marking the highest reading for the index in eight months.
Meanwhile, the Asian stock market traded higher, following news that Greece and its international creditors have finally reached an agreement on a new bailout for the debt-laden country. Media reports that Iran is close to a nuclear deal with six world powers also boosted investor sentiment.
After hours of negotiations, Greece and its creditors reached a conditional agreement for a third bailout program that consists of several tough austerity measures. European Council President Donald Tusk said the agreement comes with strict conditions but places Greece on a path of growth and helps regain trust.
Monday, the Australian dollar showed mixed trading against its major rivals. While the Australian dollar fell against the U.S. dollar and the Canadian dollar, it rose against the yen. Meanwhile, the aussie held steady against the euro and the NZ dollar.
In the Asian trading today, the Australian dollar rose to 4-day highs of 1.4804 against the euro and 0.9469 against the Canadian dollar, from yesterday’s closing quotes of 1.4848 and 0.9431, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.42 against the euro and 0.97 against the loonie.
The aussie advanced to a 6-day high of 1.1120 against the NZ dollar, from yesterday’s closing value of 1.1057. The aussie may test resistance near the 1.15 region.
Against the U.S. dollar and the yen, the aussie edged up to 0.7428 and 91.76 from yesterday’s closing quotes of 0.7405 and 91.39, respectively. The aussie is likely to find resistance near 0.78 against the greenback and 95.50 against the yen.
Looking ahead, final German CPI for June is due to be released at 2:00 am ET.
Swiss PPI for June, U.K. consumer price and producer price indices for June, along with house price index for May, Eurozone industrial production for May and the German ZEW economic sentiment index for July are also slated for release.
In the New York session, U.S. retail sales data, import price index and U.S. NFIB small business index, all for June and U.S. business inventories for May are set to be published.
The material has been provided by InstaForex Company – www.instaforex.com