- AUD/USD stays on the back foot, snaps three-day uptrend sellers attack intraday low.
- Australia Private Capital Expenditure (CAPEX) rose past 2.5% forecast but stayed well below 6.3% prior during the second quarter.
- NSW marks record daily infections fueling national tally to new all-time high beyond 1,100.
- Mixed chatters concerning China and Fed challenges the traders ahead of the key US data/events.
AUD/USD fails to cheer better-than-forecast Aussie data as virus concerns weigh on the quote near 0.7265, down 0.16% intraday, during early Thursday. In doing so, the Aussie pair snaps a three-day uptrend as market sentiment sours ahead of the week’s crucial catalysts.
Australia’s Q2 Private Capital Expenditure (CAPEX) crossed 2.5% market consensus with 4.4% figures but remained below 6.3% previous readouts.
Read: Aussie CAPEX smashes estimates but well below prior
Other than the disappointing prints from the Aussie GDP’s key component, escalating coronavirus woes in the Oz nation also weigh on the AUD/USD prices. Recently, Australia's most populated state New South Wales (NSW) reported the all-time high daily infections, 1029 cases, and propelled the national count to 1,116.
China’s virus numbers also increased from 20 to 25 whereas New Zealand joined Aussie to mark a jump in the COVID-19 daily figures.
Read: Coronavirus Update: Australia refreshes record infections, figures from NZ, China are up as well
It’s worth mentioning that the virus woes join cautious sentiment ahead of the Jackson Hole Symposium to exert additional downside pressure on the AUD/USD prices. Ahead of that, the US Personal Consumption Expenditure (PCE) Inflation data and second reading of the US Q2 GDP will be important as well.
Amid these plays, US 10-year Treasury yields struggle to extend the strongest run-up in three weeks, marked the previous day, around 1.34% whereas S&P 500 Futures drop 0.13% by the press time.
To sum up, subdued markets and covid fears could weigh on the AUD/USD ahead of the key USD data/events.
Technical analysis
Unless declining back below the 10-DMA level of 0.7248, AUD/USD bulls can keep July’s low of 0.7288 and the 0.7300 round-figure on their radars.
