Australian Dollar Seeks Modest Gains As Leading Indicator Improves

By Eric Andersen,

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 percentin January, having fallen 0.3 percent the previous period. Themonth’s increase marked the indicator’s first rise infour months. Building approvals, money supply, and stock pricesadded to the index as rural goods exports, the yield spread, andthe sales to inventories ratio declined and the gross operatingsurplus 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.
DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

Original Article: http://www.dailyfx.com/forex/market_alert/2012/03/20/Australian_Dollar_Seeks_Modest_Gains_as_Leading_Indicator_Improves.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

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