AUD under pressure from soft data – BBH

Soft Australian data in the form of the manufacturing PMI (57.5 vs 58.7), soft house prices, and most importantly disappointing Q4 17 capex, sent the Australian dollar lower, according to analysts at BBH. 

Key Quotes

“Private capex fell 0.2%.  The market had been looking an increase of around 1%.  Mining was especially weak and not completely offset.  We noted yesterday that the Aussie was one of three major currencies (CAD and SEK being the other two) there were below their 200-day moving averages.  With today's drop, the Australian dollar has punched through the 61.8% retracement of the rally that began in early December.  That retracement is near $0.7745 and that may offer resistance now.”