AUD/USD capped by 20 SMA on 4hr sticks – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik>, chief analyst at FXStreet explained that the AUD/USD pair fell yesterday on disappointing Australian data, as private capital expenditures contracted by another 9.2% in the third quarter, after shrinking 3.3% in the previous one.

Key Quotes:

“The decline was led by a contraction in business investments in the mining sector, as commodities prices have been plunging during the past few months on the back of China’s economic slowdown.”

“The technical picture is still mild positive, as the pair managed to hold above the 0.7200 level, and the 4 hours chart shows that the price is struggling around a bullish 20 SMA, whilst the technical indicators are bouncing from their mid-lines, in line with an upcoming recovery. Nevertheless, the pair needs to regain the 0.7240 level, the immediate short term resistance, to be able to retest the highs near 0.7300 posted earlier this week.”
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Source:: FX Street