FXStreet (Mumbai) – The Aussie came under renewed selling pressure as European traders hit their desks, negatively reacting to a horribly weak print of the Australian private sector investment released earlier on the day.
AUD/USD fails to sustain near monthly highs and drops sharply
Currently, the AUD/USD pair trades 0.40% lower at 0.7222, miring near session lows reached at 0.7215 last hours. The recovery post-Capex lost steam ahead of hourly 50-SMA at 0.7242 and the prices faced heavy selling as RBA rate cut chatter returned to markets after the capex data surprised to the downside.
Private capex spending slumped 9.2% in Q3, missing the forecast 2.8% decline big time. While the 2015-16 capex estimate, came in line with forecasts at $120 billion for the fourth estimate.
Adding to further bearish pressures, the recovery in the commodities is also seen fading as gold prices erase gains to trade at $ 1070 while copper retreated to 2.10 from 2.13 highs. While the US oil turned negative near $ 42.80, halting a 3-day rally.
Meanwhile, the US dollar is expected to remain supported amid thin markets, which may also keep the Aussie undermined.
AUD/USD Levels to watch
The pair has an immediate resistance at 0.7242 (1h 50-SMA), above which gains could be extended to 0.7286 (Nov 25 High) levels. On the flip side, support is seen at 0.7200 (round number) from here it to 0.7182 (Nov 24 High).
(Market News Provided by FXstreet)