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;