Australian private capex expenditure declined by more than expected in Q1, falling 4.4% (vs -2.2% consensus). The capex expenditure plans for the upcoming financial year have shifted very slightly higher, but remain subdued.The data underscores the continued challenges to the Australian domestic economy and suggests that the interest rate market will continue to price a high likelihood of further cuts from the RBA. We remain short AUDNZD with a 1.0340 target and continue to expect an adjustment in relative positioning, to help drive the cross lower. BNP Paribas positioning indicator shows a modest score of -4 for the AUD and elevated score of -35 for the NZD (on a scale of -50 to +50) which in our view is out of line with fundamentals.
The post BNP Paribas: AUD/NZD to decline to 1.0340 appeared first on www.forextell.com.