FXStreet (Mumbai) – The Australian dollar continues to get battered by its US counterpart in the mid-Asian trades, knocking-off AUD/USD to fresh six week lows below 0.7680 levels. The Aussie shaved-off overnight gains and was smashed on the releases of OZ private capex data which continued to fall sharply in the Q1 2015.
AUD/USD plunges from 0.7761 highs
Currently, the AUD/USD pair trades -0.71% lower at fresh six week lows of 0.7672, breaching the crucial support at 0.7680. AUD/USD pared losses and dived deeper in red poor capex figures released in early Asia raised concerns over pick-up in mining-led investment after years of massive investment into the resource sector. Moreover, the weak capex figures also fuels expectations of further easing by the RBA which also dragged the Aussie lower.
Private capital expenditure fell 4.4% in the March quarter, the Australian Bureau of Statistics (ABS) reported on Thursday, adding to the December-quarter revised drop of 1.7%, and coming in worse than the forecast decline of 2.3%. The estimate for total private capital expenditure in 2014/15 is 8.1% lower than in 2013/14, with the main contributor to the decrease being mining, where capital spending is forecast to be some 18.4% lower.
Moreover, the Aussie remains pressured amid falling iron-ore prices after Citi slashed its price forecasts while stronger US dollar also keeps the Australian dollar undermined.
Meanwhile, markets now shift their attention towards US macro releases later today for further momentum on the pair.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7761 (Today’s High) levels, above which gains could be extended to 0.7800 levels. On the flip side, support is seen at 0.7635 (April 10 Low) levels from here it to 0.7600 levels.
(Market News Provided by FXstreet)