- Aussie declines as 3Q Capex data released
- Private investment falls the most on record
- Dismal data likely fueled RBA rate cut bets
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The Aussie declined after Australia’s third quarter Capex data crossed the wires. Private investment declined 9.2 percent missing the -2.9 percent analyst consensus. This was the largest drop since the Australian Bureau of Statistics began recording the data.
The dismal report likely inspired near-term RBA rate cut bets. In its most recent interest rate decision, the Reserve Bank of Australia maintained a data-dependent monetary policy outlook. As the Capex report was released, Australian 2-year government bond yields tumbled.
Speaking of the RBA, the markets are no longer pricing in at least one rate cut from the central bank over the next 12 months. The Reserve Bank of Australia will have its December monetary policy announcement next week. Perhaps its tone could reveal how likely an interest rate cut might be.