AUD/USD: Bulls stimulated by Capex 3rd estimate uptick, retail sales shrugged off
|AUD/USD rose to a fresh session high of 0.7545 as upbeat forward looking Capex data overshadowed dismal retail sales and weaker-than-expected China Caixin PMI release.
Eyes trend line hurdle
The spot appears on track to test 0.7550 (rising trend line coming from June 24 low and July 27 low). The data released in Australia showed retail sales growth stalled in July as opposed to expected growth of 0.3%. Meanwhile, Capex plunged 5.4% in Q2, beating the estimated drop of 4.2%. However, the currency was bouyed by the fact that Australian firms have planned to spend A$105.2b in 2016-17 vs est. of A$97b.
Meanwhile, China Caixin PMI missed estimate to print at 50.00, but was overshadowed by the upbeat forward looking Australian Capex figures as well. The currency pair was last seen trading around 0.7540 levels
AUD/USD Technical Levels
Immediate resistance is seen at 0.7550 (rising trend line coming from June 24 low and July 27 low), which if beached would open doors for 0.7577 (10-DMA). Next major resistance is seen at 0.7676 (July 15 high). On the lower side, a violation at daily low of 0.7512 would expose 0.7494 (100-DMA), under which the spot could target 0.7420 (July 27 low).
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