The Australian dollar climbed above the $0.90 threshold on Tuesday, it’s highest in four weeks; driven by the optimistic business confidence and house prices which advanced at the fastest pace since 2010. Meanwhile, the Federal Reserve’s (Fed) new Governor Janet Yellen is expected to give her speech and deliver her first semi-annual monetary policy testimony later in the day.
The aussie climbed to $0.9014, its highest since January 14, the Australian dollar is currently trading 0.67% higher at $0.9008.
Australian Dollar – Upbeat Business Confidence & House Prices
The National Australia Bank (NAB) Monthly Business posted an index reading of 8 last month, compared to the previous reading of 6 seen in December.
Meanwhile houses prices in Australia climbed 3.4% higher in the final quarter of 2013, rising from the previous reading of 1.9% seen in the previous quarter.
“Conditions look to have turned around a little faster than we had expected just a few months ago,” NAB said on Tuesday, “with low interest rates and depreciating AUD gaining surprisingly good traction in some non-mining sectors of the economy.”
The NAB survey also revealed employment conditions were still weak and expects the Reserve Bank of Australia (RBA) to cut its benchmark rate further later in the year.
Janet Yellen Upcoming Speech
The Federal Reserve’s (Fed) new Governor Janet Yellen is expected to give her speech and deliver her first semi-annual monetary policy testimony later in the day. Market analysts are expecting a dovish testimony from Janet Yellen which could weaken the US dollar.
“We see no reasons why Chairman Yellen will front-run the FOMC in March, especially while waiting for the outcome of one more jobs report for additional clarity on the underlying trend in labour markets,” JP Morgan analysts wrote in a note.
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