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29 Aug 2013
AUD/USD firmer, eyes on 0.900
FXstreet.com (Edinburgh) -Better mood around the Aussie dollar on Thursday is lifting the AUD/USD to the 0.8970/80 band, advancing for the second consecutive session.
AUD/USD stronger post-Capex
The key Capex indicator surprised investors on Thursday, gaining 4.0% during the second quarter, markedly surpassing the median at 0.2% and leaving behind the previous 4.1% contraction. Alvin Pontoh, Macro Strategist at TD Securities, commented, “capex was stronger than expected in Q2, but belies an actually quite weak report. In fact, the component that feeds into Q2 GDP—plant & equipment —fell for the third consecutive quarter (-1.2%), against our expectation for a small bounce. We have downgraded our Q2 GDP forecast from +0.6% to +0.4% (due Sep 4)… The upshot is that today’s report keeps hopes of more RBA easing very much alive, though we continue to expect the Board to leave the cash rate unchanged at 2.50% next week”.
AUD/USD critical levels
At the moment the pair is up 0.26% at 0.8965 with the next resistance at 0.8975 (high Aug.28) ahead of 0.9002 (hourly cloud base) and finally 0.9030 (high Aug.27). On the flip side, a breakdown of 0.8923 (hourly Tenkan line) would expose 0.8891 (low Aug.28) and then 0.8848 (2013 lows Aug.5).
AUD/USD stronger post-Capex
The key Capex indicator surprised investors on Thursday, gaining 4.0% during the second quarter, markedly surpassing the median at 0.2% and leaving behind the previous 4.1% contraction. Alvin Pontoh, Macro Strategist at TD Securities, commented, “capex was stronger than expected in Q2, but belies an actually quite weak report. In fact, the component that feeds into Q2 GDP—plant & equipment —fell for the third consecutive quarter (-1.2%), against our expectation for a small bounce. We have downgraded our Q2 GDP forecast from +0.6% to +0.4% (due Sep 4)… The upshot is that today’s report keeps hopes of more RBA easing very much alive, though we continue to expect the Board to leave the cash rate unchanged at 2.50% next week”.
AUD/USD critical levels
At the moment the pair is up 0.26% at 0.8965 with the next resistance at 0.8975 (high Aug.28) ahead of 0.9002 (hourly cloud base) and finally 0.9030 (high Aug.27). On the flip side, a breakdown of 0.8923 (hourly Tenkan line) would expose 0.8891 (low Aug.28) and then 0.8848 (2013 lows Aug.5).