Australia’s second-quarter CAPEX survey has been released and beats expectations by a mile.
- Australia Q2 New Capital Expenditure +4.4 pct QoQ s/adj (Reuters poll +2.5 pct).
- Australia Q2 Building CAPEX +4.6 pct QoQ, s/adj.
- Australia Q2 Plant/Machinery CAPEX +4.3 pct QoQ s/adj.
The focus ahead of Gross Domestic Product, however, is the equipment investment sub-component, which too was a strong number.
Nevertheless, the Aussie is not impressed and remains subdued, down 0.14% at the time of writing.
About CAPEX
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).