27 Aug 2015
AUD/USD reversing initial offer post Capex and rallies
FXStreet (Guatemala) - AUD/USD was initially offered to 0.7105 on the release of the Capex data that arrived lower than the expected -2.5% for Q2 and came in at -4.0%, but bounced back on the same five minute stick.
The decline may be attributed to a further decline in iron ore prices which will be weighing on business investment. The initial move to the downside was going against the better bid tone in the major as the greenback started to come off as we progressed through the overnight session in the US, despite the Durable Goods> beating expectations.
However, it was when the market grabbed hold of the data that Australian firms were coming with bullish intentions and planning to spend AUD114.8b, which was more than the estimated AUD111b, that lifted AUD/USD to the highs, at time of writing being 0.7153.
Dudley (voting dove and Vice Chair of the Fed) killed the recovery in the greenback when he explained a September hike was less compelling, although hoped a hike would come this year.
AUD/USD Bulls climbing towards key 0.7180
Technically, the Bulls need to get back to the base of the two-year channel at 0.7180/60 while they are committing at key supporting levels that will otherwise confirm a further run of the downside if broken with closes. 0.7120 support is first major resistance that it is currently testing the eaters of. To the downside, the 0.7030's are the August lows ahead of the 0.7016 March 2006 lows. These levels guard 0.7000 ahead of the 2004 June low of 0.6772 on the longer term targets.
The decline may be attributed to a further decline in iron ore prices which will be weighing on business investment. The initial move to the downside was going against the better bid tone in the major as the greenback started to come off as we progressed through the overnight session in the US, despite the Durable Goods> beating expectations.
However, it was when the market grabbed hold of the data that Australian firms were coming with bullish intentions and planning to spend AUD114.8b, which was more than the estimated AUD111b, that lifted AUD/USD to the highs, at time of writing being 0.7153.
Dudley (voting dove and Vice Chair of the Fed) killed the recovery in the greenback when he explained a September hike was less compelling, although hoped a hike would come this year.
AUD/USD Bulls climbing towards key 0.7180
Technically, the Bulls need to get back to the base of the two-year channel at 0.7180/60 while they are committing at key supporting levels that will otherwise confirm a further run of the downside if broken with closes. 0.7120 support is first major resistance that it is currently testing the eaters of. To the downside, the 0.7030's are the August lows ahead of the 0.7016 March 2006 lows. These levels guard 0.7000 ahead of the 2004 June low of 0.6772 on the longer term targets.