With private company expenditure at its lowest level in over 4 years and is a warning signal to the markets that businesses are tightening their belts and less confident in the economic outlook. As with all releases we also need to consider to broader trend of the currency and additional numbers for a clearer picture of economic health, but technically the AUD may have formed a triple top off of the back of today's release.
The AUD/USD has been ranging [erratically] between 0.892 and 0.0908 for the past few weeks, so today’s downside break was a refreshing change. We appear to have formed a triple top which if successful, projects initial targets around 0.897. However, I would expect price reactions around 0.888 and 0.8820 as they have proved to be reliable levels of S/R previously.
The larger picture is indeed bearish and interesting to note the AUD has not managed to capitalise on the back of Gold strength, which tends to correlate very well. However, the AUD/USD has been struggling to breach the 0.908 swing high and at time of writing at least, the downside looms.
AUD/USD Hour Chart" title="AUD/USD Hour Chart" width="474" height="242">
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