🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Forex - AUD/USD re-approaches 6-year trough after Australian data

Published 08/27/2015, 02:32 AM
Aussie slips lower vs. broadly stronger greenback
AUD/USD
-
EUR/AUD
-

Investing.com - The Australian dollar slipped against its U.S. counterpart on Thursday, re-approaching a recent six-year trough after downbeat data from Australia and as demand for the greenback remained broadly supported.

AUD/USD hit 0.7099 during late Asian trade, the session low; the pair subsequently consolidated at 0.7107, edging down 0.17%.

The pair was likely to find support at 0.7067, Wednesday's low and resistance at 0.7157, Wednesday's high.

The Australian Bureau of Statistics reported on Thursday that private capital expenditure declined by 4.0% in the second quarter, compared to expectations for a 2.5% fall.

Private capital expenditure dropped 4.5% in the first quarter of 2015, whose figure was revised from a previously estimated 4.4% slide.

The Australian dollar was also affected by developments in China, Australia's biggest export partner.

Concerns over whether a free fall in China’s stocks will make the world’s second-largest economy weaker persisted. Shares in Shanghai opened higher on Thursday, after ending the previous session 1.27% lower.

Recent steep declines in Chinese equity markets have sparked fears that they will hasten an economic downturn and undermined investor confidence in the government’s ability to revitalize economic growth.

The turmoil in markets began when China unexpectedly devalued the yuan on August 11, sparking fears over the condition of the economy.

Meanwhile, the greenback remained supported after the U.S. Commerce Department reported on Wednesday that total durable goods orders increased by 2.0% last month, compared to expectations for a decline of 0.4%.

Core durable goods orders, which exclude volatile transportation items, inched up 0.6%, topping forecasts for an increase of 0.4%.

Investors were eyeing the release of U.S. second-quarter growth data later in the day, for further indications on the strength of the economy.

The Aussie was also lower against the euro, with EUR/AUD climbing 0.53% to 1.5972.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.