Daily Morning Report 13.02.2018

The Australian and New Zealand dollars held steady against their U.S. counterpart on Tuesday, after the release of upbeat Australian data and as sentiment on the U.S. dollar became more vulnerable in the face of recovering equity markets.

AUDUSD was almost unchanged at 0.7863, the highest since February 7.

Earlier Tuesday, the National Australia Bank said its business confidence index rose by 2pts to +12 index points, its highest level since April 2017.

NZDUSD was steady at 0.7268.

Meanwhile, the U.S. dollar weakened as global equity markets began to recover on Monday from last week’s steep losses.

U.S. markets were especially boosted by news on Monday of a $200 billion infrastructure plan by the Trump administration.

The plan is part of the two-year budget agreement passed by the U.S. Congress last Friday, ending a brief government shutdown.

The agreement is set to boost federal spending by almost $300 billion and suspend the debt ceiling for a year.