FX News – November 28: AUD/USD Jumps on Positive Australian Capex

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The market was caught by surprise today when Australia showed a better-than-expected capital expenditure (Capex) data. Its Capex for 2013/2014 is at AUD 166.8 billion, which is far higher than the estimated AUD 159 billion, its plan and machinery Capex at -1.5% (QoQ), and its building Capex is at 6.3% (QoQ).

These figures led to a jump in the value of the AUD/USD pair which has so far struggled over the past week since the RBA said that it would consider currency intervention if the aussie remains overvalued. After bottoming out at 0.9065 yesterday, the pair made a sharp rise to above 0.9130, even reaching today's high of 0.9140.

The AUD/USD pair is currently trading at 0.9122, with initial resistance seen at 0.9110, followed by 0.9132. Meanwhile, initial support is at 0.9035, followed by 0.9012.

Although it peaked yesterday at a high of 1.3612, the EUR/USD pair began today's trading on a low note around the 1.3570 zone. While the US celebrates Thanksgiving this Thursday, Europe will be fairly busy with a number of news and data coming from the region today. These include November's unemployment data from Germany (8:55AM GMT), as well as Consumer Confidence, Business Climate, and Economic Sentiment Indicator in the Eurozone for November.

The EUR/USD pair is currently trading at 1.3571, with initial resistance seen at 1.3622, followed by 1.3656. Meanwhile, initial support is at 1.3565, followed by 1.3531.

Then there's the USD/JPY. The pair lost the 102.00 level earlier today, but only momentarily, as it was able to regain the position fairly quickly. It went down to today's low of 101.94, but has settled around the 102.00 area so far in today's session.

The USD/JPY pair is currently trading at 102.04, with initial resistance seen at 102.72, followed by 102.98. Meanwhile, initial support is at 101.66, followed by 101.40.

By FX Strategy Team, Published on 28th of November 2013
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