FXStreet (Edinburgh) – Lee Hardman, Currency Analyst at BTMU, sees the likeliness of further easing by the RBA in light of the recent CapEx figures.
Key Quotes
“The Australian dollar has underperformed in the Asian trading session following the release of the weaker than expected Australian capital spending report for Q1”.
“The report revealed that private capital expenditure contracted for the second consecutive quarter by a larger than expected -4.4% in Q1”.
“The updated estimate for private capital expenditure for 2015/16 also proved weaker than expected at a very soft AUD104 billion which was towards the lower end of consensus expectations”.
“Estimates for mining investment were materially weaker for this and into the next financial year”.
“Estimates for non-mining investment have also been downgraded”.
“The report has raised concerns that the Australian economy is likely to face more of a struggle to transition towards domestically driven growth which may still require additional monetary stimulus to support growth”.
(Market News Provided by FXstreet)