Key Global Foreign Exchange Indicators in the Previous Week

(Continued from Prior Part)

The Australian dollar to the US Dollar pair fell to 0.72 levels on November 26, 2015, after the Private Capital Expenditure data from the Australian Bureau of Statistics came out below forecasts. The week has been on a negative note for the Australian dollar except for the uptick on November 24. There was no data release on the US front as the markets were closed for Thanksgiving. The positive labor and durable goods data from the US front on November 25 meant that the currency pair remained on a weak note as it fell by 0.45%.

The fall also caused the US dollar index to move up as the FOMC’s (US Federal Open Market Committee) meeting is due near the middle of December. The Reserve Bank of Australia’s (or RBA) monetary policy meeting is expected to take place on December 1, 2015, and is expected to guide further movement in the Australian dollar.

Australia’s Private Capital Expenditure (or PCE) for the quarter ending September 2015 came out at -9.2% against a forecast of -2.8%. The PCE for the previous quarter was -4.4%. The fall happened in both buildings and structures expenditure as they fell by 9.8%, as well as in equipment, plant, and machinery, as they fell by 8.2%.

Australian ETFs were trading on a negative note on November 27, 2015. The CurrencyShares Australian Dollar Trust (FXA) fell by 0.79%. Meanwhile, the iShares MSCI Australia Index Fund (EWA) was trading lower by 0.73%.

The Australian ADRs (American depositary receipts) trading in US markets continued the negative spiral. BHP Billiton (BHP) fell by 2%. In the mining sector, British-Australian multinational Rio Tinto (RIO) fell by 1.7%, while Australian banking ADR Westpac Banking (WBK) fell by 0.04%.

Browse this series on Market Realist:

• Part 1 - Pound Moves On Third Quarter GDP Estimates
• Part 2 - US Dollar Index Continues Gains after Holiday