AUD/USD dumps on weak capex outlook

By FXStreet AUD/USD has dropped on the back of yet another poor outlook in Australia’s Capex data, despite the headline being positive for Q4.

AUD/USD was trading at 0.7187 on the release and quickly slid to recent lows of 0.7166. The headline data came in as Q4 capex +0.8% q/q vs -3.0% expected and -9.2% prior. However in general, as markets price today on forward expectations, the first estimate of 2016/17 capex was just AUD82.6b which is down around $40b form this current year and at the low end of estimates ad the first estimate for non-mining capex for the same period is at 48b which is also weak.

AUD/USD levels

On a break to the downside, 0.70 handle is at risk and below lies the support of the bullish channel formed at the end of January’s business this year. On the upside, the pivot is at 0.7226 guarding recent highs. The 200 dma (0.7270) with daily closes opens up the December highs of 0.7327, the 30th Dec and 0.7385 on the 3rd Dec.
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Source:: FX Street