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You can find the current article at its original source at http://www.theguardian.com/world/2014/may/29/australian-dollar-rises-sharply-as-economy-fights-back
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| Australian dollar rises sharply as economy fights back | Australian dollar rises sharply as economy fights back |
| (about 1 hour later) | |
| The Australian dollar rose sharply on Thursday after figures showed that the economy is weaning itself off dependency on the mining sector. | The Australian dollar rose sharply on Thursday after figures showed that the economy is weaning itself off dependency on the mining sector. |
| Despite business investment falling for the second quarter in a row as the resources industry slows down, data from the Australian Bureau of Statistics showed higher than expected spending in the manufacturing sector. | Despite business investment falling for the second quarter in a row as the resources industry slows down, data from the Australian Bureau of Statistics showed higher than expected spending in the manufacturing sector. |
| There was also more good news from the housing sector with sales of new home sales up 2.9% in April, according to the Housing Industry Association on Thursday. | There was also more good news from the housing sector with sales of new home sales up 2.9% in April, according to the Housing Industry Association on Thursday. |
| The Aussie spiked 0.65% to US92.94c on the news, which helped offset more overnight falls in the price of iron ore. Australia’s biggest export is now selling for US$96.80 a tonne, which is down 28% on the year. | |
| The ABS figures said new private capital expenditure fell by 4.2% in the March quarter after a 4.5% fall in the last months of 2013. | The ABS figures said new private capital expenditure fell by 4.2% in the March quarter after a 4.5% fall in the last months of 2013. |
| The closely watched figures cover investment in capital goods which includes such things as buildings and equipment. Investment in the mining sector was down 8.7% in the first three months of the year, after a 5% fall in the December quarter. | The closely watched figures cover investment in capital goods which includes such things as buildings and equipment. Investment in the mining sector was down 8.7% in the first three months of the year, after a 5% fall in the December quarter. |
| A National Australia Bank senior economist, David de Garis, said although the headline figure was worse than expected, the details of the report were encouraging. | A National Australia Bank senior economist, David de Garis, said although the headline figure was worse than expected, the details of the report were encouraging. |
| "There was a big fall in mining investment which I don't think anyone would be surprised with but for manufacturing and other industries, investment was up, so that's somewhat reassuring," De Garis said. | "There was a big fall in mining investment which I don't think anyone would be surprised with but for manufacturing and other industries, investment was up, so that's somewhat reassuring," De Garis said. |
| Businesses surveyed by the ABS say they are expecting to spend 12% less on their businesses in 2014-15 than they were in 2013-13. | Businesses surveyed by the ABS say they are expecting to spend 12% less on their businesses in 2014-15 than they were in 2013-13. |
| "It's still pointing to quite a big downturn but, nevertheless, came out stronger than expected, so there are some signs of life in the non-resource industries," De Garis said. | "It's still pointing to quite a big downturn but, nevertheless, came out stronger than expected, so there are some signs of life in the non-resource industries," De Garis said. |
| "It's not yet filling the void but it's moving in the right direction. The Reserve Bank of Australia will be seeing this as another reason to stay on hold." | "It's not yet filling the void but it's moving in the right direction. The Reserve Bank of Australia will be seeing this as another reason to stay on hold." |