AUD/USD Drops Below 0.77 as Australian Capex Falls 4.4%

Australian business investment fell by 4.4 per cent in the March quarter, worst than economists’ forecasts of a 2.4 per cent fall.

The closely-watched figures, released by the Australian Bureau of Statistics, cover investment in capital goods which includes such things as buildings and equipment.

Businesses collectively expect to invest $149.946 billion on capital goods by the end of the 2014/15 financial year, which is 8.1 per cent lower than the same estimate made for the previous year, the ABS said on Thursday.  During the 2015/16 financial year businesses expect to invest $104.033 billion, which is 24.6 per cent lower than the corresponding estimate made for 2014/15.