- Private Capital Expenditure at 1.1% Y/Y for 2Q vs. -0.9% Expected, -2.5% Prior Quarter
- Australian Dollar Rises as Better-Than-Expected Reports Bolsters RBA Rate Expectations
- Stay Updated with Major Economic Releases Through DailyFX’s Economic Calendar
The Australian Dollar rose sharply after Australia’s Bureau of Statistics reported Private Capital Expenditure figures for the second quarter of 2014. The release revealed that companies invested 1.1 percent more in their businesses compared to the same period last year, after three continuous quarters of decline. The figure beat expectations of a contraction of 0.9 percent and prior quarter’s fall of 2.5 percent.
The Australian Dollar likely appreciated because the upbeat data fueled bets for an earlier than expected rate increase from the Reserve Bank of Australia. The central bank, in its last few policy statements, has hinted at a decline in investments from companies and framed its monetary policy to accommodate the shortfall. The contrarian expansion in capital expenditure probably bolstered tighter policy expectations from the RBA as the benchmark Australian 10-year government bonds yields rose after the data was released.
AUDUSD [15 mins – 07/28/2014] Chart created using FXCM Marketscope.