The Westpac Index calculates the growth of composite index which consists of nine economic barometers in Australia. The components of the index are related with the confidence of the consumer, stock costs, housing, supply of money and the spreads of interest rate.
Significance: It is a device that shows the probable space of the health of the economyof Australia ahead of three months. An increase in an index indicates a possible enhancement in the economic activity of the country. On the contrary, a fall in the figure indicates a downturn in an economy. This can be utilized in the form of a good pointer of the economic cycle of the business also.
Impact on the Market: The result of the report does not have a temporary impact on the AUD’s movement as large number of calculated pointers is issued before the release of the composite.