Release Explanation: The release 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 Australian MI leading index came in at a -0.4 percent month over month after a -1.0 percent decline was seen on the previous figures reading. The fall in the leading index has shown that the economy has gained some footing during December. The annualized growth rate in the coincident index was up to 3.3 percent. Meanwhile, seven of the eight components measured in the leading index contributed to the fall seen in December.
Forex Technical Reaction: The Australian dollar has strengthened slightly after this report was released. However the pair still faces the neutral pivot point as resistance before the quarterly retail sales number is released.