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AUD/USD dumps on big miss in CAPEX, Feb low of 0.7758 taken out

3/1/2018, 10:06:55 AMMarket Analysis
AUD/USD dumps on big miss in CAPEX, Feb low of 0.7758 taken out

On the back of a big miss in Aussie CAPEX just now, AUD/USD has moved sharply to the downside, extending an already stretched offer that has been changing hands below the 0.78 handle and the 200-D SMA for the first time since Dec 2017. Currently, AUD/USD is trading at 0.7744, down -0.28% on the day, having posted a daily high at 0.7771 and low at 0.7741.

The seasonally adjusted trend volume estimate for total new capital expenditure fell 0.2 percent quarter-on-quarter in Q4 2017, according to Australian Bureau of Statistics. The markets were expecting capex growth of 0.9 percent. However, the prior was revised higher to 1.9%.

Australia seasonally adjusted capex estimate fell by 0.2% in Dec quarter

AUD/USD levels

This break of 0.7760 and 0.7745 opens 0.7650 (76.4% of 0.7501/0.8135), as argued by Jim Langlands that was mentioned in the preview to CAPEX earlier.

Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained that the short-term picture for the pair is bearish while the RSI indicator maintains its bearish slope around 36, although with limited bearish strength, as the Momentum indicator hovers below its mid-line. "February low at 0.7758 is now the level to breach to confirm further declines ahead for this Thursday."