Forex Flash: Australian mining boom approaching peak – UBS

FXstreet.com (Barcelona) - Investors received further evidence overnight that Australia's mining investment boom is approaching a peak - Australia's Bureau of Resources and Energy Economics published its semi-annual report into big-ticket mining investment projects. Overall it painted a relatively benign picture, however there was a notable decline in the number (and value) of projects moving from the planning stage to the "committed" stage of development. "To us this suggests that miners are becoming significantly more hesitant about their future investment plans." writes Research Analyst Gareth Berry at UBS.

However the overnight publication is just an appetizer ahead of Thursday's more important capital expenditure report published by the Australian Bureau of Statistics. This will not only reveal the investment habits of thousands of Australian corporates (and miners) during Q3, but will crucially also provide the latest estimate of their spending intentions between now and June 30, 2013.

According to Berry, "We expect to see a significant decline in the spending intentions of miners in this report, consistent with a peak occurring in the mining boom over the next year. That's why, as a trade recommendation, we're long an AUDUSD downside option with a mid-March expiry."