The Australian dollar strengthened to around $0.65 on Thursday, continuing its upward trend from the previous session, bolstered by stronger-than-expected private capital expenditure data.
Aussie dollar extends gain on strong data
Total new capital expenditure in Australia rose by 1.1% quarter-on-quarter in Q3, exceeding forecasts of a 0.9% increase and marking a recovery from the 2.2% decline in Q2. Data released earlier this week also pointed to easing domestic inflationary pressures, challenging the generally hawkish outlook for Reserve Bank of Australia policy.
US dollar decline helped AUD
On the international front, the Aussie dollar gained from a broad decline in the US dollar, as US PCE inflation data aligned with expectations, indicating little change in the Federal Reserve’s plans for rate cuts. However, investor sentiment remained cautious about China’s economic outlook, particularly amid rising US-China tensions ahead of Trump’s return to the White House.
