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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