Cross-posted from Chris Weston at IG.
Watching 0.7960 today as key resistance – the top of the multi-month channel and just below the 50% fibo of years high to low. Todays Aussie capex data (11:30 AEST) could be key as a feed into the upcoming growth print…I think we get a small increase in revised capex intensions for 2014/15, although this still leaves intensions down 7% or so over the corresponding period. We also get the 1st estimate for 2015/16 CAPEX plans..Economists expect a 4.3% decline from the 2014/15 figure.
The short-term technicals are actually looking more constructive, having printed a higher high and closing above the 38.2% fibo of the years high to low point. Momentum and trend indicators are echoing this as you can see in the stochastic and MACD oscillators