Leading Index, which indicates the likely pace of economic activity relative to trend from three to nine months ahead, fell from 1.11 percent in March to 0.92 percent in April.

Bill Evans, Chief Economist at Westpac, explains that this marks the ninth consecutive month where the growth rate of the index is at or above the trend. That followed a seventeen consecutive months of growth rate that had been below the trend. That is a aftermath of the weakness we saw in the economy in the September quarter.

“The resumption of positive growth in the Index in August last year gave us some comfort that the bounce back in growth in the December quarter to 1.1% could have been anticipated.” economist explains.

The main story of the Asian session is a decision from Moody’s to downgrade the Chinese rating to A1 from AA3 (while changing outlook to stable from negative). On news of a downgrade Aussie inched lower lower but now is recovering.

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 AUDUSD on the decision from Moody’s to downgrade Chinese rating to A1 from AA3 eased but now is recovering. source: xStatnion5