The Australian dollar is down today after weak business investment numbers, which may have put a case for an interest rate cut back on the table.
At 7pm (GMT), the Aussie dollar was trading at US72.27c down from US 72.50c in yesterday’s trade.
The Australian Bureau of Statistics reported that Business capital expenditure fell 9 percent last quarter, which was well below analysts’ expectations of a 3 percent decrease and marks the 2nd straight quarter where the figure has been well below consensus.
The fear is now that the disappointing numbers will pass over to next week’s GDP figures, which many expect to, now, come in below 1 percent.
RBA governor Glenn Stevens sounded up beat earlier in the week in a speech by noting that Investors should “chill out” on the question of an interest rate rise.
Although most don’t expect a cut in rates when the RBA next week the following monetary statement will be closely monitored with many predicting that Governor Stevens will find it hard to sound as upbeat about the Australian economy as last time after the worst capex figures of all time.
The Australian dollar is expected to trade in a tight range in the run up to the weekend as traders take a break as the US celebrates Thanks Giving with trading to pick up on Monday as the US market opens and a round of economic news from Australia hits the market.