- Australian Westpac Leading Index comes in -0.1% for February vs. -0.1% (Revised) in January
- Soft consumer sentiment and unemployment expectations continue to contribute to negative prints
- Australian Dollar yields limited response as traders take cues from broader risk trends
The AUD/JPY yielded a muted response this morning to the release of the Westpac Leading Index which printed at -0.1 percent, with the prior reading being revised to the same level from -0.2 percent. Details of the report revealed that a deterioration in consumer sentiment and unemployment expectations have been behind the recent weak readings for the gauge.
This minor reaction from the Aussie may be attributable to the limited implications of the report on the rate outlook in Australia and thus the AUD’s yield-status. Indeed, minutes from the Reserve Bank released yesterday reinforced expectations for the cash rate to remain on hold for some time, which may bode well for the currency’s interest rate advantage.
In the session ahead the Aussie will likely be taking cues from broader-risk trends, where an improvement in investor sentiment may help to bolster demand for the unit. Also noteworthy for the AUD/USD in the coming 24 hours is the event risk posed by the FOMC rate decision which will be covered live on DFX Plus here.
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Written by Daniel Giardina, any comments, suggestions, or feedback please email firstname.lastname@example.org