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27 Feb 2014
Flash: AUD hurt by Q4 Capex - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, noted the weaker release from the Capex during Q4 is weighing on the AUD.
Key Quotes
"The foreign exchange market has continued to remain very stable in the Asian trading session with the dollar index bouncing modestly from support at the 80.0-level yesterday which is an area where it has found strong support over the last two years. The biggest moving G10 currency during the Asian trading session has been the Australian dollar which has declined modestly following the release of the weaker than expected Australian private capital expenditure report for Q4 2013."
"The report revealed that total capex declined by 5.2% in Q4. More significantly the report also contained the first estimate for investment intentions in FY2014/2015 which was very weak."
"The first estimate for investment intentions for FY2014/2015 was AUD124.9 billion which was 17.4% lower than the first estimate for investment intentions for FY2013/2014. Investment intentions in the mining sector declined even more sharply by 25%. The report provides further evidence that the boost to the Australian economy from the mining boom is set to ease further."
Key Quotes
"The foreign exchange market has continued to remain very stable in the Asian trading session with the dollar index bouncing modestly from support at the 80.0-level yesterday which is an area where it has found strong support over the last two years. The biggest moving G10 currency during the Asian trading session has been the Australian dollar which has declined modestly following the release of the weaker than expected Australian private capital expenditure report for Q4 2013."
"The report revealed that total capex declined by 5.2% in Q4. More significantly the report also contained the first estimate for investment intentions in FY2014/2015 which was very weak."
"The first estimate for investment intentions for FY2014/2015 was AUD124.9 billion which was 17.4% lower than the first estimate for investment intentions for FY2013/2014. Investment intentions in the mining sector declined even more sharply by 25%. The report provides further evidence that the boost to the Australian economy from the mining boom is set to ease further."