More on the falling Australian leading index

Comments from Westpac on their index published earlier, and also on the Reserve Bank of Australia .

• Leading Index growth rate remains materially below trend
• continues to point to weak economic momentum carrying well into 2020

Westpac expect that the dece December RBA meeting wil result in an 'on hold' decision for the cash rate:

• the Board continues to hold a clear easing bias while, for now, remaining in 'monitor mode'.

However, going into early 2020:

• We expect that by next February the Board will have received enough information on the impact of the three cuts we have seen since June to acknowledge the need to reduce the cash rate by a further 0.25%, maintain a clear easing bias and consider introducing unconventional policies.

Meanwhile, AUD is back to where it started the session with swings and roundabouts on trade headlines:

1. US-China relations: US Senate passes bill in support of Hong Kong protests
2. AUD/JPY responding to doubts over US-China trade talks
3. US Sec of Commerce Ross says optimistic on getting a trade deal done with China