Expectations: Australian Private Capital Expenditure (Q2) Q/Q Exp. -0.9% (Low -4.2%, High 3.1%) Prev. -4.2%.
- Today’s Australian private capex release takes on added importance ahead of next Wednesday’s Q2 GDP reading and following yesterday’s poor Construction Work Done Q/Q report, which posted the largest fall since Q3 2009.
- Interestingly, RBA Governor Stevens is also scheduled to speak on the same day as the GDP release at a CEDA function in Adelaide.
Current investment bank expectations for today’s data:
- Analysts at JPMorgan say today's capex data is important as it comes amid disappointing retail volumes and net trade data. As such markets will be watching to see whether today's data follows suit or if intentions signal the potential for a rebound in domestic demand, a scenario that may allow RBA's Stevens to dismiss recent weak data as temporary.
- Elsewhere, analysts at Westpac say the report will provide guidance on the next Australian GDP data and surely a more relevant to the RBA outlook. They go on to say that the RBA has already indicated that it does not expect a strong Q2 GDP reading and is more focused on Q3 and particularly 2015.
Print 00:33, 28 Aug 2014 - Asian News - Source: RANsquawk
RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: