The Australian dollar remained trapped below 76.50 US cents on Monday as news of deteriorating business conditions compounded the currency's weakness in the wake of stronger-than-expected US jobs data. The Aussie was $0.7730/33, off a low of $0.7726, but compared to $0.7787/90 late here on Friday, according to Reuters data. "Flowing on from weak data last week through strong US payrolls and into the NAB survey today the Aussie has been under fire," said David Mozina, currency strategist at ABN Amro. "The survey is another reality check to people who think the Australian economy is going great guns. Cracks are definitely beginning to appear.
In a survey released on Monday, the National Australia Bank (NAB) revealed its indices of business conditions and confidence both fell in April on falling sales and profitability, which for the first time were threatening to hit strong employment growth.
The business conditions index is now at half its February level while business confidence stands at its lowest level since June 2002.
The survey provides further evidence of a slowing economy and lessens the chances of interest-rate rises by the Reserve Bank of Australia (RBA) in the near future.
The Aussie is now being hit by a less-hawkish outlook on interest rates and the prospect of a diminishing yield premium over the US dollar.
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