New Zealand trade and Aussie capex due later
The New Zealand trade balance report is due at 2145 GMT. A deficit of $1.00 New Zealand dollars is expected.
The main event on the Australian calendar is the Q3 private capex report. A 2.9% decline is expected to compound a 4.0% fall in Q2.
AUD/USD rose as high as 0.7283 earlier today but is down at 0.7250 on the ebb and flow in the larger US dollar picture. It could challenge 0.7300 if capex is better than expected.
"The resumption of the strong US dollar uptrend should weigh on AUD/USD during the next few months," according to Westpac. "The next major downside target is 0.6900, beyond that 0.6700."
I like the upside in AUD/USD at the moment. USD inflows will stall in the coming two days due to the holiday while AUD has shown great resilience. The latest dip is an opportunity to buy in expectation of a rise to 0.7350. Stop at 0.7225.
