Australia: Capex will drag on Q4 GDP – AMP’s Oliver
|Dr. Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital – Australia’s largest life insurer and huge fund manager, expressed his take on the latest Australian Capex data release and its impact on the country’s growth numbers.
Key quotes
Australian December quarter business investment -2.8% QoQ due to a 5.9% fall in building investment which was consistent with the fall in construction.
Equipment investment was +0.8%, mining -2.7%, manufacturing -10.1% and other -1.9%.
Capex will drag on Dec quarter GDP, which we currently expect to be just +0.3% QoQ.
AUD bulls attempting a bounce
AUD/USD is seen extending the bounce from near a multi-year low of 0.6541, despite the coronavirus fears led risk-off trading in the Asian equities, as the bulls cheer upbeat Australian Capex estimates for 2020/21.
The spot, currently, trades +0.20% at 0.6556, having hit a new daily high at 0.6561 in the last hour.
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