The Melbourne Institute’s (MI) measurement of Australia’s Leading Index, a composite index of nine economic indicators, revealed a contraction of approximately 0.1% occurred in the month of May. The indicator tends to have little impact on currency values given the delay of the data release – the report is published about 50 days after the month ends.
Nevertheless, news that a composite collection of major indicators have declined does not bode well for a global market rife with economic pessimism that appears to be growing by the day. So far traders have seen the Australian dollar (AUD) sell off a bit in today’s trading on the news of this contraction.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
