AUD/USD: Wavers above 0.7350 despite downbeat Aussie Private Capital Expenditure
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- AUD/USD pays a little heed to Australia’s Private Capital Expenditure (CAPEX) data for Q3.
- Virus woes, fears of US-China tussle combat vaccine hopes, Thanksgiving Day.
- US holiday, light calendar suggests dull trading, bulls can keep the reins amid US dollar weakness.
AUD/USD struggles for a clear direction while taking rounds to 0.7360 during early Thursday. The aussie pair recently ignored the third quarter (Q3) Private Capital Expenditure data from home as US holiday and mixed risk signals trouble the traders around multi-day high.
Australia’s Private Capex for Q3 slipped below -1.5% forecast to -3.0% but stayed well above the previous 5.9% contraction.
Read: Australia’s Private Capex misses estimates with -3% in Q3, AUD/USD unfazed
Risk catalysts trade mixed as S&P 500 Futures prints mild gains while stocks in Australia and New Zealand struggle for a clear direction with less than 0.50% intraday losses by press time.
The reason could be traced from mixed signals concerning the coronavirus (COVID-19) and the US-China linkages, be it trade and/or political.
Global COVID-19 infections cross 60 million and push Germany to extend the partial lockdown towards late in December. Spain is also considering to limit the Christmas celebrations while the US hospitalization becomes worrisome.
Elsewhere, the US and China have so far performed nearly 50% of what promised in their early-2020 trade agreement, which in turn suggests a trade war is coming. Also, the Trump administration recently blacklisted four companies from China and Russia saying to have links to Iran’s missile program.
On the positive side, the vaccine developments and US President-elect Joe Biden’s readiness to battle the covid, coupled with a sound team, favor the risks.
Looking forward, an absence of US traders will restrict the market moves amid a light calendar. Though, the US dollar weakness, amid a lack of safe-haven demand and downbeat data at home, can keep favoring the AUD/USD buyers.
Technical analysis
Despite the latest pullback from multi-day high, the ability to stay past-0.7345/40 area, comprising highs marked in mid-September and early November, keeps the AUD/USD buyers hopeful of breaking the 0.7400 round-figure.
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