Search ForexCrunch

Australian Private Capital Expenditure Overview

Australian CapEx figures to be released today at 01:30 GMT, which is a measure of inflationary pressure in the private sector. Aussie CapEx last printed at a -0.2% contraction, and AUD bulls will be hoping for an improvement in the headline figure to indicate that economic conditions in Australia might be improving, though the macro data being released today is low-tier and is unlikely to drive much action overall.

The Aussie has been in a bit of a slump for most of 2018, with weak growth figures keeping the Reserve Bank of Australia (RBA) firmly unmoving on interest rates, with many expecting the central bank to remain frozen through 2019.  

How could it affect the AUD/USD?

Positive figures would be a welcome change for the Aussie-Dollar pairing, but economic data for the Asia-Pacific region market region has been a middling affair at best as of late, and trade tensions are running high in the global marketplaces, strangling freewheeling spending and trade.  According to  FXStreet’s own Valeria Bednarik, “the pair heads into the Asian opening above the 38.2% retracement of its latest weekly slide, also above all of its moving averages that anyway continue lacking directional strength, while technical indicators entered positive territory, with the Momentum still in neutral territory but the RSI at 61. The key to the upside is 0.7620, the 50% retracement of the latest weekly decline, as above it, the risk will clearly lean to the upside.”

Key notes

AUDUSD outlook- recovery extends and pressures key 30SMA barrier

Aussie dollar up more than a percent from yesterday’s dip

About Australia’s Prive 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).