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The Australian dollar held gains against the USD after the ABS reported that total new capital expenditure fell 1.6% in the March quarter 2020, following a 2.6% fall in the December quarter. Forward-looking 2020/21 capex estimates were also weak, with the second estimate down 7.9% year on year.
Stock gains and supportive comments from RBA Governor Lowe kept AUD/USD near 0.6630.
Weak capex plans signal lower business investment during the COVID-19 slowdown, which weighs on Australian growth. For feed buyers, the effect is indirect: a firmer AUD modestly lifts Australian export competitiveness pressure on grain and meal pricing.
octaafrica.netMay 28, 2020Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
