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28 Nov 2013
Flash: Attention on Australia’s private capex survey - Westpac
FXstreet.com (Barcelona) - There will be close attention on Australia’s private capex survey today (8GMT), notes Sean Callow, FX Strategist at Westpac.
Key Quotes
"After a 4% q/q jump in investment in Q2, Westpac is in line with the median forecast in looking for a -1.2% pullback. We expect falls of about 1-1.5% in both plant & equipment and buildings/structures, with the former the more important component for next Wed’s GDP release."
"AUD will react to the divergence between the actual spending and -1.2% median but the RBA will be paying more attention to the update on investment plans for 2013/14."
"In the previous survey investment plans were $152.5bn, which we estimate would ultimately produce a -4% y/y fall, with mining and investment falling but services about flat."
"In a Market News survey, the handful of forecasts for 2013/14 capex plans ranged from $153.6bn to $163bn. We see overall risks to the weak side in the report."
Key Quotes
"After a 4% q/q jump in investment in Q2, Westpac is in line with the median forecast in looking for a -1.2% pullback. We expect falls of about 1-1.5% in both plant & equipment and buildings/structures, with the former the more important component for next Wed’s GDP release."
"AUD will react to the divergence between the actual spending and -1.2% median but the RBA will be paying more attention to the update on investment plans for 2013/14."
"In the previous survey investment plans were $152.5bn, which we estimate would ultimately produce a -4% y/y fall, with mining and investment falling but services about flat."
"In a Market News survey, the handful of forecasts for 2013/14 capex plans ranged from $153.6bn to $163bn. We see overall risks to the weak side in the report."