Aussie CAPEX smashes estimates but well below prior

Australia’s CAPEX survey has been released and beat expectations by a mile.

• AUSTRALIA Q2 NEW CAPITAL EXPENDITURE +4.4 PCT QTR/QTR S/ADJ (REUTERS POLL +2.5 PCT)
•  AUSTRALIA Q2 BUILDING CAPEX +4.6 PCT Q/Q, S/ADJ
• AUSTRALIA Q2 PLANT/MACHINERY CAPEX +4.3 PCT Q/Q, S/ADJ

The focus ahead of Gross Domestic Product, however, is the equipment investment sub-component, which too was a strong number. 

nevertheless, the Aussie is not impressed and remains subdued, down 0.14% at the time of writing. 

About CAPEX

The Private Capital Expenditure released by the Australian Bureau of Statistics measures current and future capital expenditure intentions of the private sector. It is considered as an indicator for inflationary pressures. A high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).