AUD/USD drops to lows near 0.6725 as Australia’s Capex surprises negatively.
AUD/USD met fresh supply and hit session lows near 0.6725 region after the Australian Capex data surprised markets to the downside, fanning RBA rate cut calls, Further, the US-China trade spat continues to weigh.
The offered tone around the AUD strengthened, pushing the AUD/USD pair to a session low of 0.6725 as Australian private sector business investment fell unexpectedly in the second quarter.
According to the Australian Bureau of Statistics (ABS), private sector capital expenditure (CAPEX) fell 0.5% in three months to June in seasonally adjusted chain volume terms, missing market expectations for an increase of 0.5%.
A weaker-than-expected headline figure and the slight miss on the forward-looking number is hurting the AUD at press time. AUD/USD pair is currently trading at session lows near 0.6725, having hit a high of 0.6744 earlier today.
The downside, however, could be limited by an uptick in the CAPEX on plant and machinery. Also, the AUD may pick up a bid if the USD/CNH pair dives out of a pennant pattern (Yuan appreciates) and global stocks put on a good show.
AUD/USD SHORT (Sell)
ENTER AT: 0.67310