AUD/JPY: Comatose in the wake of dismal Aussie CAPEX
|- AUd/JPY lacks a clear directional bias after Wednesday's Doji candle, a sign of indecision.
- Australia's CAPEX drops more-than-expected in the third quarter.
- Mild risk-off favors a downside move in the Aussie pairs.
AUD/JPY is trading largely unchanged on the day near 76.80, with the Aussie bears sitting on the fence despite the third quarter Private Capital Expenditure (CAPEX).
Private new capital expenditure fell by 3% in the July to September period, following a 5.9% slide in the second quarter. Economists had forecast a 1.5% decline, the data released at 00:30 GMT showed.
However, estimate 4 for 2020-21 came in at AUD 104,984 million – up 6.3% than the estimate 3 for 2020-21.
While so far, the AUD/JPY pair has lacked a clear directional bias, the mild losses in the Asian equities indicate the period of indecision may end with a downside move.
Stocks in Asia are flashing red, possibly in response to the disappointing US jobs data and new COVID-19 lockdowns. That said, hopes for swift global economic recovery on potential coronavirus vaccines are likely to keep risk assets supported on dips. Further, an absence of US traders on account of the Thanksgiving holiday will likely restrict the market moves amid a light calendar.
Technical levels
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