AUD/USD: Soft Aussie Capex figure could take the shine off the bullish candlestick pattern

• Australia CAPEX report comes short.
• AUD/USD reports losses, drops to 10-day moving average of 0.7552.  

Australia’s latest private sector capital expenditure (CAPEX) report has underwhelmed with expected investment coming in below market expectations.

The private CAPEX rose 0.4 percent in the first quarter following a 0.2 percent drop registered in the fourth quarter of last year but missed the estimate of a 0.7 percent rise.

Further, expected CAPEX for the next financial year came in at $87.7 billion vs forecast of $90.7 billion. Meanwhile, the latest CAPEX estimate for 2017/18 printed at $117.5 billion, beating the estimate of $115.1 billion.

The AUD/USD pair has hit a fresh session low of 0.7553 in response to dismal CAPEX data (softer business spending).  

Daily chart

Spot rate: 0.755

Daily high: 0.7580

Daily low: 0.7552

Trend: Bullish revival

Aussie created a bullish outside-day candle on Wednesday, signaling a resumption of the rally from the May 9 low of 0.7412.  It will be interesting to see if the Aussie bulls are able to capitalize on the yesterday’s bullish outside-day candle despite weak domestic data.

AUD/USD Technical Levels

Resistance: 0.7584 (previous day’s high), 0.7610 (50-day MA), 0.7643 (March 29 low).

Support: .7545 (5-day MA), .7498 (May 29 low), 0.7476 (previous day’s low).