FxWirePro: AUD/USD reverses Capex led slump, retakes the 0.72 handle
Data released earlier today showed that headline Australian private capex figures came in much weaker than expectations. Q1 Australian capex (private capital expenditure) reading shows a capex of -5.2% q/q vs -3.5% expec…
Data released earlier today showed that headline Australian private capex figures came in much weaker than expectations.
Q1 Australian capex (private capital expenditure) reading shows a capex of -5.2% q/q vs -3.5% expected and compared to a revised +1.8% last quarter.
Weak data led to a 15-pips knee-jerk downward slump in the major, lows of 0.7161 were hit.
The pair has since recovered almost entire slide and is back above the 0.72 handle, currently trading around 0.7207.
AUD/USD's recovery was capped at 61.8% Fib retrace level at 0.7212, further upside can be seen only on decisive breaks above.
Above 0.7212 (61.8% Fib resistance) the pair finds next major hurdle at 0.7242 levels.
Weakly charts are biased lower, we see scope for test of 0.7042 (78.6% Fib), bearish invalidation only above 0.73 levels.
RBA Governor Stevens’ dovish comments earlier this week and rising expectations that the Fed could hike at any of the next few meetings keep upside limited.
US durable goods orders, due later in the NA session and RBA member Debelle’s speech and Fedspeaks will be closely watched.
