- Business confidence in at +12, from +4 prior
- Business conditions in at -4 from -7 prior
From the NAB:
- Confidence surges to its highest level in 3½ years.
- Business conditions, however, still subdued – with employment poor.
- Signs of better conditions in finance/ business/ property and construction.
- Forward indicators – including orders, stocks and capacity utilisation – point to future improvement.
- But wholesale leading indicator less certain.
- Firms manage to increase prices modestly but margins still under pressure.
- Forecasts unchanged except cash rate cut delayed to February.
AUD/USD is up on the release, but has run into sellers ahead of 0.9450 again.
Note from the summary points that NAB have an expectation for a further RBA cash rate cut in February of 2014.
OIS data puts the probability of a 25bp rate cut in November at 19%
