Low business confidence weighs on Aussie

Australia's business confidence data came back disappointing Tuesday morning as it fell eight points to -9 in November from last month. This level is lowest since April 2009 when the financial markets were in turmoil. There is speculation now that the central bank will have to cut interest rates in the coming months.

Australia's business conditions index, also released by NAB, has remained unchanged at -5. This index measures orders, employment and profitability.

With the announcement we saw the Aussie trade lower versus the US dollar.

This news comes only a week after the RBA lowered interest rates by a quarter. The deterioration of business confidence despite the monetary easing shows that businesses are slow to respond and that the drop in interest rates has indeed done little to help the economy.

The RBA Governor, Glenn Stevens, will be giving a speech on Wednesday which will surely be a big focus for traders and investors who will be watching for a new outlook for the Australian economy.

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