Aussie Trades Lower on Poor Data, Risk Aversion

The Australian dollar was trading generally lower today due to an unexpected drop of private capital expenditure last week. Released at the start of Thursday’s trading session, a report on construction work done showed a decline as well, but it was not as big as experts had feared. The Forex market was in a risk-off mode after US President Donald Trump officially supported Hong Kong protesters, and that also had a negative impact on the Aussie.
The Australian Bureau of Statistics reported that private capital expenditure fell 0.2% in the September quarter from the previous three months. That was a surprise to analysts as they were expecting no change. The indicator dropped 0.6% in the June quarter.
Construction work done fell 0.4% in the previous quarter from the prior three months. Nevertheless, the reading was not as bad as the median forecast of a 1.0% drop. The drop in the second quarter of this year got a positive revision from 3.8% to 2.8%.
Going forward, the Aussie will react to news affecting the general market sentiment, in particular those about shifts in the Sino-US relations. As for macro releases in Australia, the next week will be full of important reports. Of particular interest to traders will be GDP data due for release on Wednesday. A monetary policy decision on Tuesday will also be very important to the currency.
AUD/USD fell from 0.6774 to 0.6768 as of 11:39 GMT today, touching the low of 0.6759 intraday. EUR/AUD rose from 1.6226 to 1.6254, and its daily high was at 1.6287. AUD/JPY declined from 74.21 to 74.09 but rebounded from the session minimum of 73.91.

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Original from: www.earnforex.com