Aussie Flat After Capital Spending Data

Aussie difficulty maintaining its gains against the US dollar despite the projected levels of private capital expenditure for the year 2015/2016 increased and the major indices China eventually recovered from taham 5-day decline. Australian dollar had jumped to its highest level daily 0.71515 per dollar shortly after a report of private corporate capital spending (private capital expenditure) was released.

The overall level of capital expenditure of private companies in Australia fell 4% in the second quarter, lower than expectations for a decline of 2.5% and extend into a third-quarter contraction in a row. However renacana third estimate for the year 2015/2016 capital expenditure rose 9.9% to 111 billion AUD compared to the previous estimate of 104 mliar AUD. This increase reflects the private Australian company plans to boost its activities through projects or new investment.

Meanwhile China's stock market, a major trading partner of Australia, is also still wary of the economic conditions of China. Stock market volatility in China to try to recover today after US stock markets rose sharply respond to the increasingly lower chance of rising levels of US borrowing costs next month. The Aussie dropped 2.21% in late trading on Monday (24/8) after the Shanghai Composite Index fell 8.5%, posting its biggest daily decline since 2007.