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AUD Dives After Business Confidence Slump

Australian business conditions have suffered their steepest monthly decline since the global financial crisis, slumping 82% from +11 in November to +2 in December. The news has sent the Aussie dollar diving over 20 points to 71.42 US cents.

Lead by retail, the “broad-based” slump in confidence affected almost every Australian state and industry.

NAB Chief Economist, Alan Oster, claims retail conditions remain “particularly weak”, with ongoing deterioration forecast [trend terms].

“Business conditions fell sharply in December, and while caution should be taken when interpreting data around the Christmas/New Year period, this outcome continues the downward trend in conditions over the second half of 2018,” remarks Oster.

[NAB]

[NAB]

The downwards trend spanning the second half of last year saw employment slump 56% to +4 index points, and trading conditions slip 53% to +7.

The profitability sub-index plummeted 8 points to zero.

Mr Oster claims monitoring future conditions and orders track will be critical for determining 2019 retail outlook.

[NAB]

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