29 May 2014
AUD might face strong headwinds later in the year – BTMU
FXStreet (Edinburgh) - Lee Hardman, Currency Analyst at BTMU, sees increasing headwinds for the Aussie dollar later this year.
Key Quotes
“The Australian dollar has strengthened further overnight following the release of the latest Australian capital investment report for Q1”.
“The report revealed that the second estimate of investment expectations for 2014/15 was AUD137.1 billion which was 9.3% higher than the first estimate. However, it still represents a 12% decline from the second estimate of investment expectations for 2013/2014”.
“Overall investment expectations for 2014/2015 remain weak and continue to point to a decline in business investment over the year ahead. It is driven by weakness in the mining sector where the second estimate for investment expectations for 2014/2015 was set 21.2% lower than the second estimate for 2013/2014”.
“The ongoing decline in the price of iron ore which has declined by almost 30% so far in 2014 will also result in another income hit to the Australian economy later this year which is gradually increasing downside risks for Australian dollar ahead”.
Key Quotes
“The Australian dollar has strengthened further overnight following the release of the latest Australian capital investment report for Q1”.
“The report revealed that the second estimate of investment expectations for 2014/15 was AUD137.1 billion which was 9.3% higher than the first estimate. However, it still represents a 12% decline from the second estimate of investment expectations for 2013/2014”.
“Overall investment expectations for 2014/2015 remain weak and continue to point to a decline in business investment over the year ahead. It is driven by weakness in the mining sector where the second estimate for investment expectations for 2014/2015 was set 21.2% lower than the second estimate for 2013/2014”.
“The ongoing decline in the price of iron ore which has declined by almost 30% so far in 2014 will also result in another income hit to the Australian economy later this year which is gradually increasing downside risks for Australian dollar ahead”.