Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Forex - AUD/USD declines on downbeat Australian data

Published 02/26/2015, 03:00 AM
Updated 02/26/2015, 03:00 AM
Aussie slides lower vs. greenback as capital expenditure data disappoints

Investing.com - The Australian dollar declined against its U.S. counterpart on Thursday, weighed by downbeat private capital expenditure data, while remarks by Federal Reserve Chair Janet Yellen continued to weigh on the greenback.

AUD/USD hit 0.7844 during late Asian trade, the session low; the pair subsequently consolidated at 0.7863, sliding 0.30%.

The pair was likely to find support at 0.7739, the low of February 24 and resistance at 0.7979, the high of January 27.

The Australian Bureau of Statistics earlier reported that private capital expenditure fell 2.2% in the fourth quarter of 2014, exceeding expectations for a 1.9% decline.

The change in private capital expenditure for the third quarter was revised to a 0.6% rise from a previously estimated 0.2% uptick.

Meanwhile, the greenback remained under pressure amid lowered expectations for a mid-year U.S. rate hike after Yellen in testimony to the Senate Banking Committee Tuesday that it was "unlikely" that economic conditions would warrant an interest rate increase for "at least the next couple of FOMC meetings".

In a second day of testimony to the Financial Services Committee on Wednesday Yellen reiterated this message, saying that wage growth and inflation must rise before the bank can hike rates, despite signs of improvement in the labor market.

The Aussie was also lower against the New Zealand dollar, with AUD/NZD dropping 0.54% to 1.0381.

Also Thursday, Statistics New Zealand reported that the country's trade balance swung into a surplus of NZ$56 million last month from a deficit of NZ$195 million in December, whose figure was revised from a previously estimated deficit of NZ$159 million.

Analysts had expected the trade deficit to hit NZ$162 million in January.

Later in the day, the U.S. was to release data on the consumer price index, as well as reports on initial jobless claims and durable goods orders.

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.