Australia CAPEX: -0.5% vs +0.5% expected (AUD/USD lower)
- Australia’s Q2 actual CAPEX data has arrived, AUD/USD lower 10 pips on the release.
- ANZ NZ business confidence arrived at the same time - lower than prior.
Australia’s Q2 actual CAPEX and an updated survey of business investment intentions for 2019/20 have been released. Markets were split on where to be looking, some looking for continued disappointments, with the ranges between -0.3% and +0.5%.
"Total (inflation-adjusted) CAPEX has been roughly flat over the past 3 years, with mining investment tapering lower but non-mining investment picking up," analysts at Westpac explained
The data arrived as follows:
- -0.5% vs +0.5% expected (previous -1.7%).
- ANZ NZ Business Confidence (Aug) -52.3 (previous -44.3) -(NZD lower).
About the Private Capital Expenditure
The Private Capital Expenditure released by the Australian Bureau of Statistics measures current and future capital expenditure intentions of the private sector. It is considered as an indicator for inflationary pressures. A high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
