The headline Q1 CAPEX figure:
- prior was -1.2%
- +0.5% expected
Most attention is focused on the outlook into 2013/14. The report today gives us the 2nd estimate for CAPEX plans for 13/14.
- The first estimate came in at $152.49bn.
- The 2nd estimate is expected somewhere in the range from $142b to $175b
Given what we’ve been hearing about CAPEX plans the risk is that the 2nd estimate comes in to the downside and is bearish for the Australian dollar, while a result stronger than the initial estimate could relieve some of the bearish pressure on AUD.
A result that comes in very weak, say below $145bn, will be interpreted as vry weak indeed, indicating a broad slowing in business investment and has greater risks for downside to the AUD.
