Trade Desk Thoughts - Australia AIG Services

Australia AIG Services Index Actual 39.3, Previous 42.8

Release Explanation: The Australian AIG Index ( services and manufacturing) is a seasonally adjusted composite index based on the diffusion indexes for production, new orders, deliveries, inventories and employment. Each category has its own weight correspondent to its effect on the economy. A reading above 50 indicates expansion, while a reading below 50 indicates contraction. The distance from 50 is indicative of the strength of the expansion or decline.

Trade Desk Thoughts: Services sector activity deteriorated further in August, amid soft consumer and business confidence and weaker economic conditions. This is the fifth consecutive monthly decline in services activity and was underpinned by significant falls in sales and new orders. Employment in services also continued to decrease, although at a slower rate. On a seasonally adjusted basis, activity expanded in none of the nine sectors, although it was broadly steady in health & community services.

Forex Technical Reaction: This release has not affected the Australian dollar. Traders may be waiting for the release of the GDP at 21:30.

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