Aussie Climbs on Capex Data

The Australian dollar jumped against its US counterpart after data showed that private investment increased last quarter unexpectedly. The Aussie’s gains against the euro and the Japanese yen were smaller, but the Aussie dollar still reached the highest level this year against those currencies.

New capital expenditure (capex) rose 1.1 percent in the June quarter from the March quarter on a seasonally adjusted basis. The median forecast promised a drop by 0.6 percent. The previous reading was revised from -4.2 percent to -2.6 percent.

The surprisingly good report allowed the Australian currency, nicknamed Aussie, to rally. The currency was especially strong against the greenback, which was experiencing weakness during the current trading session.

AUD/USD climbed from 0.9333 to 0.9358 as of 4:50 GMT today, reaching the high of 0.9372 intraday. EUR/AUD traded at 1.4119 after falling from 1.4130 to 1.4092 — the lowest since November 2013. AUD/JPY went up from 96.97 to 97.08, while its daily high of 97.25 was the strongest rate since June 4.

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