Aussie Capex preview – what to expect in AUD/USD?

By FXStreet AUD/USD has had a free ride of late, rallying further away form the RBA’s preferred level vs the greenback down at 0.65c and reached a new high for Feb yesterday at 0.7258. The subsequent supply attracted demand from 0.7145 that propelled the Aussie back on top the 0.72 handle overnight, ahead of the key Capex data.

AUD/USD has been lacking domestic impetus this week so far since this year’s announcements from the RBA who are increasingly more concerned about global headwinds and turning more cautiously optimistic for the Australian economy than before.

Indeed, many of the driving forces are out of their hands, with the price of oil and key commodity prices such as iron ore, coal and copper making multi-year lows so far this year and China weighing on demand. Throughout 2015, the RBA has been reliant on domestic growth and the economy has fared better than most others in the G10 sector with solid jobs creation across various sectors, while concentrating on services and other sectors other than mining to balance the scales in Australia’s economy and trade balance.

However, one thing Australia might not be doing so well is investing in the future of such business sectors, …read more

Source:: FX Street