NAB Business Confidence Index slumps to -66 in March, AUD/USD unfazed
|- NAB Survey sees steepest falls on record in March.
- Australian economy is likely to see its first recession in three decades.
- AUD/USD unperturbed by horrible data, extends gains above 0.64.
National Australia Bank’s (NAB) index of business conditions plunged to -21 points in March vs. 1 expected and 0 last.
The survey’s volatile measure of business confidence crashed to -66 in March vs. -2 expected and -4 seen in February. The gauge fell to the lowest in the history of the series.
NAB Group Chief Economist Alan Oster said: "Worryingly, but not surprisingly, business's outlook is the weakest ever. The business has essentially told us that trading conditions, profitability and employment all went backwards in a big way in the month.”
"We expect a recession of unprecedented speed and magnitude for the Australian economy over the next three quarters. This will see a sharp increase in unemployment,” Oster added.
AUD/USD reaction
Australian dollar stands resilient to the awful March NAB Business Survey, as AUD/USD refreshes daily highs above 0.6400. A better market mood and firmer commodities' prices collaborate with the upside in the aussie.
At the time of writing, AUD/USD trades 0.56% higher at 0.6416, having hit a daily high of 0.6420 in the last minutes.
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