AUD/USD remains bid despite below-forecast Aussie CAPEX and housing data
- AUD/USD is flashing green despite weak Aussie data.
- Australia’s Q1 CAPEX missed expectations, but the forward-looking 2019/20 estimate has been revised higher.
- Australian building permits fell 4.7% in April and are likely capping the upside in the AUD.
AUD/USD is showing resilience in the face of disappointing Aussie macro data releases this Thursday morning.
The currency pair is currently trading at 0.6923, representing 0.10% gains on the day, despite the weaker-than-expected Australian corporate spending data and building approvals.
Australia’s Q1 private-sector capital expenditure (CAPEX) fell 1.7% quarter-on-quarter in the first quarter of 2019, missing the estimated 0.5 growth. CAPEX had increased by 2% in the final three months of 2018.
The second estimate for CAPEX in 2019/20, however, has been lifted to $99.149 billion from the previous estimate of $92.1 billion. Markets were expecting a rise to $96 billion.
A better-than-expected forward second estimate for CAPEX in 2019/20 represents upgrade for investment intentions and could be helping the AUD stay bid.
That said, the upside is likely being capped near 0.6930 by the dismal housing data. Australian building approvals fell 4.7% month-on-month in April, missing the expected reading of 0.0%. The approvals had dropped 15.5% in March.
Looking forward, the currency pair may print fresh session highs above 0.6930 if the risk assets put on a good show. As of writing, the futures on the S&P 500 are reporting marginal gains on the day.
Pivot levels