Australia: Long-term decline in business investment should be winding down - BBH

Sandeep Kanihama FXStreet Contributor

According to the analysts at BBH, with rising terms of trade, the long-term decline in business investment in Australia should be winding down.

Key Quotes

“With a few exceptions, capex has been contracting since the second half of 2012. The 20-quarter average (five years) fell into negative territory in Q2 16. The decline in the eight-quarter average (two years) has accelerated to stand at minus 4.3%. It has been negative since Q1 15. The median forecast is for a 0.5% decline in Q4 16 after a 4% decline in Q3 16. A weaker report could fan speculation of a rate cut in Q2 and reinforce the cap for the Australian dollar near $0.7700.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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