AUD/USD: Bulls stimulated by Capex 3rd estimate uptick, retail sales shrugged off

Omkar Godbole FXStreet Contributor

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).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	High
1H	Bullish	Neutral	Low
4H	Bearish	Neutral	Expanding
1D	Bullish	Neutral	Expanding
1W	Strongly Bearish	Neutral	Low
Updated Aug 31, 00:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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