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27 Feb 2014
Asia Recap: Aussie playing with fire after dismal Aus Q4 capex
FXStreet (Bali) - The Australian Dollar added to its Thursday's losses after Australia's private capital expenditure came surprisingly weak.
The headline number for Q4 2013 came at -5.2% vs -1.3% expected and +3.6% prior, with the first estimate for 2014/15 private capital expenditure at the low end of expectations at $124.9bn vs $122/155bn expected. With regards to the 5th estimate for 2013/2014, it registered a $167.1bn vs $167bn expected. The forecast for equipment, plant and machinery capex was also horrible, at -8.6% vs +0.5% expected.
Greg Gibbs, FX Strategist at RBS, notes: "Overall a weak quarterly number and an outlook where mining investment slows faster, manufacturing goes from weak to weaker, and other selected industries recovers but tepidly."
The Australian Dollar traded as low as 0.8916 before recovering ground towards the 0.8840/50 handle. The pair remains trading at the lower end of its range, with hurdles all the way down through 0.89 not allowing much room for 'voids', critical irrelevant area that traders tend to exploit.
The Japanese Yen continued to display an astoundingly slow motion, with offers ahead of 102.70 continuing to cap the upside, while demand from importers coupled with a relatively flat Nikkei (-0.2%) underpinned the downside. The pair traded in a 20 pips range between 102.02 and 102.40.
The New Zealand Dollar, unlike the Australian Dollar, received positive news on higher milk price forecasts and a better-than-expected trade surplus, which allowed the currency to trade almost unchanged vs the USD. Against the Aussie, The Kiwi is again at a critical support at 1.0730, with a break lower potentially resuming the underlying bear trend.
Main headlines in Asia
New Zealand shows highest-ever trade surplus for January
Qantas to axe 5000 jobs
PBoC sends subtle easing message - Nomura
Australia's Q4 capex disappoints
Weak Q4 Australian capex numbers - RBS
RBNZ shows January low-deposit loans 4.8% of total new lending
Fed's Pianalto expects an open-minded Yellen
Strong news out of New Zealand - RBS
The headline number for Q4 2013 came at -5.2% vs -1.3% expected and +3.6% prior, with the first estimate for 2014/15 private capital expenditure at the low end of expectations at $124.9bn vs $122/155bn expected. With regards to the 5th estimate for 2013/2014, it registered a $167.1bn vs $167bn expected. The forecast for equipment, plant and machinery capex was also horrible, at -8.6% vs +0.5% expected.
Greg Gibbs, FX Strategist at RBS, notes: "Overall a weak quarterly number and an outlook where mining investment slows faster, manufacturing goes from weak to weaker, and other selected industries recovers but tepidly."
The Australian Dollar traded as low as 0.8916 before recovering ground towards the 0.8840/50 handle. The pair remains trading at the lower end of its range, with hurdles all the way down through 0.89 not allowing much room for 'voids', critical irrelevant area that traders tend to exploit.
The Japanese Yen continued to display an astoundingly slow motion, with offers ahead of 102.70 continuing to cap the upside, while demand from importers coupled with a relatively flat Nikkei (-0.2%) underpinned the downside. The pair traded in a 20 pips range between 102.02 and 102.40.
The New Zealand Dollar, unlike the Australian Dollar, received positive news on higher milk price forecasts and a better-than-expected trade surplus, which allowed the currency to trade almost unchanged vs the USD. Against the Aussie, The Kiwi is again at a critical support at 1.0730, with a break lower potentially resuming the underlying bear trend.
Main headlines in Asia
New Zealand shows highest-ever trade surplus for January
Qantas to axe 5000 jobs
PBoC sends subtle easing message - Nomura
Australia's Q4 capex disappoints
Weak Q4 Australian capex numbers - RBS
RBNZ shows January low-deposit loans 4.8% of total new lending
Fed's Pianalto expects an open-minded Yellen
Strong news out of New Zealand - RBS