Capex preview: what to expect in AUD/USD

By FXStreet FXStreet (Guatemala) – AUD/USD has been building a case on the bid in a minor recovery of the November lows to date. However, the greenback was better bid across the board today and has dragged on the coat-tails of the otherwise resilient Aussie. With the US closing up books ahead of Thanksgiving the Asian markets may have the last dance on the Capex data before the week is out with mixed sentiment surrounding the outcome for Q3 results.

Definition of Capital Expenditure (Capex)

Capital expenditure, or CapEx, are a company’s funds used to acquire and/or upgrade physical assets such as industrial building, property or company equipment. This is not to be confused with revenue expenditure. These funds are instead used to undertake new projects or investments to maintain or increase the scope of the businesses operations.

Capex is a key data release for the RBA who are forecasting the business environment ahead with company’s investment plans for 2015/2016 with a specific interest in the non-mining sector while looking for improvements in that side of the economy in a weak Global commodity environment.

What to expect in tonight’s Capex

Analysts at Goldman Sachs, expect the Australian capex trends to remain generally weak in the …read more

Source:: FX Street