AUD/USD jumps 25 pips on upbeat Aussie Capex figure

  • The bid tone around the AUD strengthened after the Q4 Aussie private CAPEX printed above estimates. 
  • The first estimate for 2019-20 CAPEX came in at A$92.144m, signaling neutral conditions for investments this year. That could cap gains in the AUD. 

The AUD is pushing higher across the board in response to an above-forecast Aussie private capital expenditure (CAPEX) figure for the fourth quarter. 

The Australian Bureau Of Statistics (ABS) released at 0030 GMT today showed the private CAPEX jumped 2 percent in December quarter, convincingly beating the forecast of 0.5 percent growth. CAPEX had dropped 0.5 percent in the three months to September 2018. 

Further, the fifth estimate of for 2018-19 came in at A$118,361m – 3.6% higher than the fifth estimate for 2017-18 and 4.0% higher than the fourth estimate for 2018-19.

More importantly, the first estimate for 2019-20 printed at A$92.144m – 11 percent higher than the first estimate for 2018-2019. 

While a big beat on the fourth quarter figure could lift the GDP, due for release next week, the first estimate of $92.144m is somewhat a “neutral” result for investment in the coming year, according to Westpac. 

So, AUD/USD may have a tough time scaling the crucial resistance of 0.72. The currency pair jumped 24 pips to 0.7166 immediately post-CAPEX release and is currently trading at 0.7153. 

Technical Levels

    1. R3 0.7254
    2. R2 0.7226
    3. R1 0.7182
  1. PP 0.7155
    1. S1 0.711
    2. S2 0.7083
    3. S3 0.7039



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD defends gains above 1.1300 amid broad dollar recovery

EUR/USD defends gains above 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 


GBP/USD batting to extend gains beyond 1.2600

Risk-on mood limits the dollar’s bullish potential. GBP/USD bounces from daily lows, but Brexit concerns weigh on Sterling. BOE Governor Bailey's speech awaited.


Gold sits near daily tops, just below $1810 level

A combination of supporting factors assisted gold to regain positive traction on Monday. Sustained USD selling remained supportive amid concerns about rising COVID-19 cases. The prevalent risk-on mood might turn out to be the only factor capping any strong gains.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI breaches $40 mark as talks of OPEC+ output cuts easing weigh

WTI (August futures on Nymex) extends Friday’s sell-off into the European trading this Monday, following a brief consolidation seen above $40 mark earlier in the Asian session.

Oil News