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$A high on better business confidence

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Published on: Tuesday, September 10, 2013

by AAP

The Australian dollar is higher, boosted by rising business confidence and optimism about the Chinese economy.

At 1200 AEST on Tuesday, the local unit was trading at 92.47 US cents, up from 91.98 cents on Monday.

The Australian dollar has been driven higher this week by better-than-expected August trade figures from China, the latest in a string of strong figures that have boosted confidence about the state of the world's second largest economy.

The local currency got another boost on Tuesday after the National Australia Bank (NAB) Business Survey showed business confidence had soared to its highest level in more than two years, helped by lower interest rates and more certainty about the outcome of the federal election.

Commonwealth Bank currency strategist Joseph Capurso said the business survey, as well as strength in regional equity markets, had pushed the Aussie dollar higher.

He added that investors now were waiting for Tuesday afternoon's release of Chinese industrial production and retail sales figures.

Meanwhile, Australian bond futures prices fell following the NAB business survey.

The September 10-year bond futures contract was trading at 95.885 (implying a yield of 4.115 per cent), down from 95.930 (4.070 per cent) on Monday.

The September three-year bond futures contract was at 96.995 (3.005 per cent), down from 97.030 (2.970 per cent).


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