Aussie Dollar Drops as Soft Capex Data Weighs on RBA Policy Bets
- Private Capex Down 5.2% in 4Q vs. -1.3% Expected, 2.6% Gain in 3Q
- Bulk of the Downturn Attributed to Mining and Manufacturing Industries
- Australian Dollar Falls The Lowest In Three Weeks Against The US Dollar
Private business investment in Australia fell 5.2 percent in the final three month of 2013, missing expectations calling for a 1.3 percent decrease. The downturn was most pronounced in the manufacturing industry, which saw a 7.0 percent drop in investment, followed by Australia’s mining industry with a 5.5 percent decline.
The Australian Dollar fell against its US counterpart after the data crossed the wires. The move likely reflected expectations that a slowdown in some of Australia’s pivotal industries may translate into headwinds for the economy as a whole and translate into renewed RBA interest rate cuts. Indeed, the drop in AUD/USD mirrored a steep slide in Australia’s benchmark 10-year yield.
AUD/USD (5 Min Chart)- Created By Daniel Giardina using Marketscope 2.0
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