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AUD/JPY: Selling dominates after soft Aus Capex outlook

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    AUD/JPY has been knocked lower following a worse-than-expected Australian capex outlook, sending the rate towards 80.30 day lows after algo-led initiated selling off 80.70 highs, with the pair now rebounding off lows, benefited but some Yen weakness in the Tokyo fix (00.50GMT).

    Australian investment outlook getting poorer

    Today's capex reflects a dire picture for capital expenditure intentions in the country, and while capex for Q4 2015 came in at +0.8% q/q vs -3.0% expected and -9.2% last, the first estimate of 2016/17 capex came at A$82.6 bln, with estimate 1 for 2016-17 at $82,572m, which is 19.5% lower than estimate 1 for 2015-16.

    AUD/JPY key levels

    On the downside, 80.10 down to 80.00 round number is the first area where sizeable bids are expected, followed by 79.60/70 recent trend lows, ahead of 79.20/79.00 (series of intraday lows Feb 11 and round number). On the upside, 80.50 mid round number is immediate resistance, ahead of 80.80/81.00 area, which should be a tough nut to crack.
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