National Australia Bank Limited (latest release)

Measures Level of a diffusion index based on surveyed businesses, excluding the farming industry;

Usual Effect Actual > Forecast = Good for currency;

Frequency Released monthly, about 11 days after the month ends;

Above 0 indicates improving conditions, below indicates worsening conditions. There’s a quarterly and monthly version of this survey – although the monthly survey is more timely, the quarterly version tends to have more impact due to a larger sample size and additional questions regarding expectations;

Why Traders Care It’s a leading indicator of economic health – businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment;

Derived Via Survey of about 350 businesses which asks respondents to rate the relative level of current business conditions;