Aussie little changed in a steadier morning part of the session

Wednesday, Feb 18 2015

It is a steadier morning part of the session for Aussie, with only minor importance CB Leading Index and MI Inflation Expectations figures being released. The Conference Board LEI for Australia increased in December, with rural goods exports making the largest positive contribution. Between June and December 2014, the leading economic index declined 0.4 percent (about a −0.8 percent annual rate), slightly better than the 0.7 percent decline (about a −1.3 percent annual rate) in the previous six months. Additionally, the strengths among the leading indicators have become more widespread than the weaknesses in recent months.

MI Inflation Expectations rose by 0.1%, however it is still moderate. Westpac’s Chief Economist, Bill Evans commented, “Growth in the Index has now been below trend for twelve consecutive months. That signal continues to point to below trend growth for much of 2015. That outlook accords with Westpac’s own forecasts with our expectation that growth through most of 2015 will be running at around a 2.75% pace, below the trend growth pace of around 3.25%. That forecast is based around another 0.25% rate cut over the next few months and an Australian dollar which will bottom at around USD 0.75 by mid-year."

Aussie is currently being traded around 0.7810 level. Pair is likely to find support around 0.7750 and resistance above 0.7850 level. Later today, in the US session, Building Permits, Housing Starts and FOMC Meeting Minutes are scheduled for a release.

More in this category: « Empire State Manufacturing Index fell to 7.8 Sterling higher after upbeat in job figures »