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Aussie Falls As Australia Q4 Capex Drops Unexpectedly

The Australian dollar weakened against other major currencies in the Asian session on Thursday, after data showed that the private capital expenditure in Australia dropped unexpectedly on quarter in the fourth quarter of 2016.

Data from the Australian Bureau of Statistics showed that the private capital expenditure in Australia was down a seasonally adjusted 2.1 percent on quarter in the fourth quarter of 2016, coming in at A$27.579 billion. The headline figure missed expectations for a fall of 0.5 percent following the 4.0 percent decline in the three months prior.

Capex for buildings and structures fell 4.1 percent on quarter and 25.5 percent on year to A$15.314 billion.

Meanwhile, Asian stock markets traded lower, following the mixed cues overnight from Wall Street after minutes of the Federal Reserve’s latest monetary policy meeting said it might be appropriate to raise interest rates again “fairly soon” if the data is in line or stronger than expectations. In addition, weaker commodity prices weighed on resources stocks.

Investors are also taking profits as the corporate earnings season winds down.

Wednesday, the Australian dollar had risen 0.31 percent against the U.S. dollar, 0.08 percent against the yen, 0.08 percent against the euro, 0.49 percent against the loonie and 0.10 percent against the kiwi.

In the Asian trading session, the Australian dollar fell to a 3-day low of 1.0663 against the NZ dollar, from yesterday’s closing value of 1.0710. The aussie may test support around the 1.04 area.

Against the euro and the U.S. dollar, the aussie dropped to 2-day lows of 1.3763 and 0.7665 from yesterday’s closing quotes of 1.3711 and 0.7702, respectively. If the aussie extends its downtrend, it is likely to find support around 1.40 against the euro and 0.75 against the greenback.

Against the Canadian dollar and the yen, the aussie slipped to 1.0088 and 86.77 from yesterday’s closing quotes of 1.0135 and 87.27, respectively. The aussie is likely to find support…

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