EUR/AUD: Aussie falls amid poor Capex data

• Aussie down on the back of poor CAPEX data.
• The set of manufacturing PMI across countries of the Eurozone is expected to decelerate in February. 

 
The EUR/AUD is trading around 1.5778 up 0.5% on Thursday after the release of poor Capex data overnight in Australia.
 
Australia’s December quarter real private capital expenditure (Capex) eased by -0.2% over the quarter, although the component that feeds into GDP—plant & equipment investment—rose by 2.2% Q/Q and manufacturing was  up 2.6% Q/Qr, while mining were down -4.7% Q/Q. 
 
Euro investors will pay attention to the Eurozone manufacturing PMI which is forecast to stay unchanged at 58.5 in February, while the Eurozone unemployment rate is expected to fall to 8.6% in January.

Only minor macro data are scheduled for Australia for the rest of this week with Friday’s new home sales in January due.

The EUR/AUD is trading above its 100 and 200-period SMA which is seen as a bullish sign. The next resistance to the upside is 1.5960 which is the 78.6% Fibonacci retracement from the August 2017-February 2018 bear trend. Further up the cyclical high at 1.6250 should provide some resistance as well. To the downside 1.5630 is the next significant support as it is the bottom of the trading range established in February of this year. Further down 1.5460 is the 61.8% Fibonacci retracement from the August 2017-February 2018 bear trend. 

EUR/AUD daily chart