Australian Q4 2025 business capex has fallen from Q3 but has beaten expectations

💡 DMK Insight

Australia’s Q4 capital expenditure data just beat expectations, and here’s why that matters: The +0.4% quarter-over-quarter increase in private capital expenditure signals a stronger-than-anticipated economic outlook, particularly driven by renewable investments. This could influence the Australian dollar (AUD) positively, especially against the USD, as traders reassess their positions based on economic resilience. The prior quarter’s robust +6.4% growth sets a high bar, but the current figures suggest that while growth is slowing, it’s not stalling. The decline in plant machinery CapEx by -1.7% could indicate caution among businesses, which is worth noting for those trading related sectors. For traders, this data could lead to volatility in the forex market, particularly for AUD/USD pairs. Watch for any shifts in sentiment as traders digest these figures. Key levels to monitor are the AUD/USD resistance around 0.6500 and support near 0.6400. If the AUD strengthens, it could also impact commodity prices, especially in sectors tied to Australian exports like iron ore and coal. Keep an eye on upcoming economic indicators that could further influence these trends.