Australian Dollar Falls Even as Leading Index Improves

The Australian dollar erased its intraday gains versus the US dollar and fell against other most-traded currencies today even as Australia’s leading indicators were improving.

The Westpac-Melbourne Institute Leading Economic Index in Australia rose 0.3% in February from the previous month. The indicator was down 0.2% in January — the sharpest decline since December 2015. Yet today’s positive report failed to help the Aussie, perhaps because traders were nervous ahead of the Federal Reserve policy announcement.

AUD/USD was up from 0.7683 to 0.7708 intraday but retreated close to its opening level by 12:59 GMT today. At the same time, AUD/JPY declined from 81.84 to 81.59.

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