AUD/USD bears back in control after poor CAPEX report

Ross J Burland FXStreet

AUD/USD has had a hard time on the back of the recent data in the CAPEX and a key component to the RBA's decision-making process in respect to the economy and investment for future growth. The data arrived as Q4 Private Capital Expenditure's headline -2.1% q/q vs. the expected -0.5%. so this was a big miss. More on the details here: Australian capex Q4: Downbeat in both headline and 2017/18 estimate

Despite the disappointment in the FOCM minutes, the Aussie is now struggling to maintain its better bid tone for the month and bears are chipping away at the key support area of the 0.77 handle beating down the doors of both the 20 and 50 sma on the hourly time frame.

AUD/USD levels

/analysis/aud-usd-analysis-still-too-risky-to-buy-above-07700-201702221945Valeria Bednarik, chief analyst at FXStreet explained that at this point, the pair needs to advance beyond 0.7731, this month high, with a broadly weaker dollar to be able to extend its gains intraday, up to 0.7815.

See here for more levels from recent intermarket report:

AUD/USD Intermarket: Aussie lagging Gold but weighed by industrials

1. R3 0.7689
2. R2 0.7684
3. R1 0.7675
PP 0.7670
1. S1 0.7662
2. S2 0.7657
3. S3 0.7648

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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