29 Nov 2013
Flash: AUD reversing? - BBH
FXstreet.com (London) - AUD/USD is higher, and a research team at BBH looked at the fundamentals of recent activity.
Key Quotes:
Australia’s new home sales fell sharply but better private capital expenditures was enough to help the Aussie to break its losing streak.
“Capex rose 3.6% (vs. exp. -1.2%) in Q3, though Q2’s readings were revised lower from 4.0% to 1.6%. The details of the report showed that spending on buildings and structures increased 6.3% while investments in new plant and equipment fell 1.5%”.
“New home sales data, however, fell by 3.8% m/m in October, compared with a positive reading of 6.4% in the previous month. Australia’s fixed income markets were little change on the news, still pricing in about a 25% chance of a RBA rate cut in Q1 of next year”.
“The Australian dollar, however, moved higher to 9.120 after the release of the stronger capex data, breaking the streak of 6 consecutive sessions down against the US dollar”.
Key Quotes:
Australia’s new home sales fell sharply but better private capital expenditures was enough to help the Aussie to break its losing streak.
“Capex rose 3.6% (vs. exp. -1.2%) in Q3, though Q2’s readings were revised lower from 4.0% to 1.6%. The details of the report showed that spending on buildings and structures increased 6.3% while investments in new plant and equipment fell 1.5%”.
“New home sales data, however, fell by 3.8% m/m in October, compared with a positive reading of 6.4% in the previous month. Australia’s fixed income markets were little change on the news, still pricing in about a 25% chance of a RBA rate cut in Q1 of next year”.
“The Australian dollar, however, moved higher to 9.120 after the release of the stronger capex data, breaking the streak of 6 consecutive sessions down against the US dollar”.