FxWirePro: Aussie dented by unexpected decline in Australia Q2 CAPEX, AUD/USD extends weakness below 21-EMA

AUD/USD chart on Trading View used for analysis

• Aussie dented by unexpected decline in Australia Q2 CAPEX numbers.
   
• AUD/USD extends weakness below 21-EMA, trades 0.37% lower on the day at 0.7282 at the time of writing.
   
• Australia's headline CAPEX fell 2.5% q/q, missing forecasts for a growth of 0.6% and compared to a 0.4% growth in the previous quarter. 
   
• Further, building permits fell 5.2% m/m also missing the estimated decline of 2.5%.
   
• The dismal headline CAPEX data might lead the investors to scale back expectations of an RBA rate hike weighing further on the Aussie.
   
• Technical indicators for the pair are neutral for the day. Long-term trend is bearish.
   
• Price action rages in downward sloping Wedge and remains capped at 50-DMA which id stiff resistance at 0.7370.
   
• Extension of weakness could see test of Wedge base at 0.7175. On the flipside, breakout at 50-DMA could see some upside.

Support levels - 0.7238 (Aug 24 low), 0.7202 (Aug 15 low), 0.7175 (Wedge base)

Resistance levels - 0.7320 (5-DMA), 0.7331 (21-EMA), 0.7370 (50-DMA)

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -95.707 (Bearish), while Hourly USD Spot Index was at 13.4717 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.