Nomura's thoughts on local.....>

AUSTRALIA DATA REACT: Nomura's thoughts on local data releases; slightly better

than expected Aussie data batch. Looking through the forward looking (2017/18)

CAPEX spending intentions, headline was A$109bn, with mining slightly higher,

but as was non-mining (up to around A$75.5bn). The latter, a modest upgrade,

while not as robust as the business surveys would imply is heading in the right

direction, and is something the RBA is looking for. Nevertheless, in terms of

the Aussie, with the data unlikely to shift the RBA's patient approach (given

subdued inflation pressures), the broader backdrop should continue to be more of

a driver. The progress on tax reforms in the US and diverging expectations

between the RBA and other central banks (such as the Fed) should continue to be

a headwind for the Aussie. Added to that is the moderating momentum in China's

economy.