The Australian Dollar has undeperformed this week and might remain a laggard in the year ahead as the Reserve Bank of Australia (RBA) cuts rates again and comes closer to launching a quantitative easing (QE) program.
Australia's Dollar was on its back foot against the U.S. Dollar and Pound Sterling Thursday after official data revealed a third consecutive fall in the value of capital expenditures during the third quarter.
Private capital expenditures fell 0.2% last quarter owing mainly to declines in non-mining equipment expenditure, the Australian Bureau of Statistics said Thursday, when markets were looking for a 0% reading. Corporate estimates of spending for the 2019/20 year overall also left the market disappointed.
Data to date suggest the Australian economy expanded a soft 0.5%/qtr in Q3, lifting the annual rate to 1.6% (4 December). Subâ€‘trend economic growth will support expectations for further monetary policy easing by the RBA and can continue to weigh on AUD.
source: Pound Sterling Live