The appreciating currency has made things hard for exporters. Australia is an export based economy so the current climb by the AUD has hit certain sectors particularly hard as sales and profits are down.
The monthly survey of over 400 firms from National Australia Bank showed the measure of business confidence falling 4 points to +14 points. In August, the index had reached +18, its best since October 2003 and well above the long-run average.
The measure of business conditions eased 1 point to +3 in September, reflecting falls in sales and profitability.
However the index for employment rose strongly, echoing government data last week which showed 40,600 jobs were created in September, against forecasts for a 10,000 fall.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.