- Private Capital Expenditure in Australia declined more than expected in Q3.
- Geopolitical tensions rise after US Pres. Trump signs Hong Kong bill into law.
- Coming up: New Home Sales and Private Sector Credit data from Australia.
The AUD/USD pair came under strong selling pressure during the early trading hours of the Asian session after US President Trump signed the Hong Kong human rights bill into law to revive concerns over a protracted trade conflict with China. Furthermore, the Australian Bureau of Statistics reported that Private Capital Expenditures in the third quarter declined by 0.2% and missed the market expectation for a decrease of 0.1%.
After slumping to a session low of 0.6759, however, the pair staged a technical rebound and turned flat on the day near 0.6775.
USD turns quiet following Wednesday’s rally
On Wednesday, the US Bureau of Economic Analysis’ second estimate for the third-quarter Gross Domestic Product (GDP) growth came in at 2.1% to beat the market expectation of 1.9% and Durable Goods Orders in October rose more than expected to help the greenback gather strength against its rivals and caused the pair to close the day around 20 pips lower. The US Dollar Index, which advanced to a fresh two-week high of 98.44 on Wednesday, was last up 0.06% on the day at 98.37.
There won’t be any macroeconomic data releases from the US on Thanksgiving Day and the pair is likely to move sideways for the next few hours. During the Asian session on Friday, New Home Sales and Private Sector Credit data from Australia will be looked upon for fresh impetus.
Technical levels to watch for
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