Australian Dollar Seeks Modest Gains as Leading Indicator Improves
THE TAKEAWAY: Australian Conference Board Leading Index Rises 1.1% > Ambivalent Risk Appetite Trends Minimize Trader Optimism > AUDUSD Slightly Up Following Release
Data released by the Conference Board of Australia shows that its leading index rose 1.1 percent in January, having fallen 0.3 percent the previous period. The month’s increase marked the indicator’s first rise in four months. Building approvals, money supply, and stock prices added to the index as rural goods exports, the yield spread, and the sales to inventories ratio declined and the gross operating surplus held constant.
Though the figure was good news for the Australian economy, the AUDUSD was only slightly up following the release as general risk appetite neutered trader convictions. In the minutes following the release, the AUDUSD rose from 1.0603 to 1.0605.
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