AUD/USD drops and pops on improved Aus capex estimates
|The AUD/USD pair dropped sharply to fresh session lows following the release of mixed Australian private capital investment data, before recovering almost entire slide over the last minutes.
AUD/USD remains capped below 0.72 handle
Currently, the AUD/USD pair trades -0.17% at 0.7186, reverting back to familiar range just below 0.72 handle after the Aus data release. The Aussie witnessed a 15-pips knee-jerk downward spike after the headline Australian private capex figures came in much weaker than expectations. However, the slide was entirely bought into after the second estimate for 2016/17 showed an improvement from the previous reading.
The recovery looks fragile and the major remains capped below 0.72 handle as markets assess the latest domestic data and its impact on RBA’s future course of monetary policy path, particularly after RBA Governor Stevens’ dovish comments earlier this week.
Next in focus for the major remains the US dataflow, including the US durable goods orders, due later in the NA session. Besides, RBA member Debelle’s speech and Fedspeaks will be closely followed.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7200 (round figure) above which gains could be extended to the next hurdle located at 0.7228/61 (10 &200-DMA). On the flip side, the immediate support located at 0.7105 (April 29 & Mar 1 Low). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7065 (Feb 14 Low).
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