Aussie Mixed-to-Lower After Leading Index Continues to Decline

The Australian dollar was mixed today, falling against some rivals and staying flat versus others, after the country’s leading index continued to decline.
According to the report released today:

The six month annualised growth rate in the Westpac–Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, rose slightly from –0.49% in April to â€“0.45% in May.

Westpac Senior Economist Matthew Hassan commented on the result:

The Index growth rate has been consistently negative over the last six months, a clear signal that economic growth is likely to be remain below trend through the rest of 2019. Figures released earlier this month showed the slowdown over the second half of 2018 extended into the first quarter of 2019 with annual GDP growth slipping to 1.8%yr, well below ‘trend’ of 2.75%yr and the slowest pace since the GFC a decade ago.

AUD/USD was little changed at 0.6873 as of 10:29 GMT today. At the same time, EUR/AUD rose from 1.6273 to 1.6297.

If you have any questions, comments, or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.

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