Forex: AUD/USD: Aussie regains ground against greenback on rise in Private Capital Expenditure

on Nov 28, 2013
Updated: Oct 21, 2019
Listen Thursday, November 28th:_ The AUD/USD yesterday extended its losses from the 23 October high of 0.9756 closing down 0.36 percent at 0.9082. The pair traded between 0.9136 and 0.9064 – its lowest level since 4 September.

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The pair initially fell today to an intraday low of 0.9075, but then rebounded sharply to an intraday high of 0.9139 where the descending 89-hour simple moving average acted as resistance and the price retraced. Right now the pair is changing hands at 0.9125. A range of 10 pips around 0.9130 has also been offering resistance since 26 November.
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The standard stochastic oscillator on the daily chart has been below the 20-line since 22 November, indicating that the price is oversold and is likely to rebound. A recovery may lead to a test of the significant 0.9300 psychological level, which has been offering strong resistance and support since June.
The uptick was initiated by the Australian Bureau of Statistics releasing the Private Capital Expenditure q/q report for the third quarter of the year. The data showed that the trend volume estimate for total new capital expenditure increased by 1.6 percent and the seasonally adjusted estimate grew by 3.6 percent. The trend volume estimate for buildings and structures jumped by 3.1 percent, while the seasonally adjusted estimate surged by 6.3 percent. The trend volume estimate, and the seasonally adjusted estimate, for equipment, plant and machinery both declined by 1.5 percent.

Analysts had expected a drop in the seasonally adjusted Private Capital Expenditure by 1.1 percent. The prior period showed a 1.6 percent increase, revised down from four percent.
The Australian Housing Industry Association also earlier today released its New Home Sales m/m revealing a 3.8 percent decline in October. The prior period saw a gain of 6.4 percent.

The US is celebrating Thanksgiving today and there are no scheduled releases of US economic data. The movements of the pair will be governed by general market sentiment.
Today’s levels of resistance: 0.9140, 0.9175 and 0.9200.
Today’s levels of support: 0.9100, 0.9075 and 0.9035.
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