Release Explanation: This is a composite index used to forecast short to mid-term growth in the Australian economy. Changes in the indicators selected are thought to precede developments in the economy as a whole. Therefore, an increase in the index forecasts economic expansion while a decrease in the index projects a future contraction. The Conference Board of Australia considers eight indicators in the calculation of the index: money supply, share prices, rural goods exports, building approvals, sales to inventories ratio, gross operating surplus, yield spread, and medium-term government bond yields. The index is calculated as a percent change off a base year; headlines report the figure in a percent change from the previous month.

Trade Desk Thoughts: The leading index for Australia has decreased 0.6 percent for the month, falling to a reading of 111.2. This is the fifth consecutive decrease for the index. Contributing to the declines seen were building approvals, share prices, and the yield spreads. Retail sales have continued to make a large positive contribution for the index.
The coincident index continued to increase in January with the strengths among the components remaining widespread in recent months. Two of the four components saw an increase with a reading of 113.1.

Forex Technical Reaction: The aussie has not reacted significantly to this release. The pair had quite a fall in late afternoon trading and has since come to find the neutral pivot point as an area of support.