Australian dollar tumbles following weak capital expenditure

The Australian dollar has taken a fall, as new capital expenditure, and building approvals data is released

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Capital expenditure fell by 0.6% in the June quarter 2018, while the seasonally adjusted estimate fell by 2.5% . The Australian dollar fell from 0.73 to 0.72 upon the news.

The Australian Bureau of Statistics (ABS) released the data on Thursday which shows:

  • The trend volume estimate for buildings and structures fell by 2.1% in the June quarter 2018 while the seasonally adjusted estimate fell by 3.9%.

  • The trend volume estimate for equipment, plant and machinery rose by 1.3% in the June quarter 2018 while the seasonally adjusted estimate fell by 0.9%.

The trend estimates for total dwellings approved fell 1.3% in July. The seasonally adjusted estimate for total dwellings approved fell 5.2% in July.

However, figures for spending expectations for 2018/2019 financial year have been upgraded from the first quater estimate, going up from $88 billion to $102 billion.

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