Release Explanation: The private new capital expenditure is a report that measures the total amount of new capital expenditures made by private businesses. A rising trend, which economist predicts will happen this quarter with a 0.5 percent increase, tend to have a positive effect on a nations currency.
Trade Desk Thoughts: The trend estimate for total new capital expenditures rose in terms of volume by 4.2 percent in the December quarter of 2008 while the seasonally adjusted rate rose 6.0 percent. The estimate for buildings and structures rose by 6.6 percent this quarter, and 11.5 percent seasonally adjusted.
Forex Technical Reaction: The Australian dollar has risen sharply after this report was released. The pair gained 30 pips to break above the 20 day moving average and the neutral pivot point which earlier had stood in the way.