AUD/USD (current price: 0.7407)
The Aussie remained relatively weak yesterday, despite the strong rally in crude oil. The negative news regarding the Australian housing market continued to cause concerns. Private Capital Expenditures were down by -4.0% in the previous quarter, missing expectations by a large margin. The Chinese Manufacturing and Services PMIs came in as expected, leaving the underlying bearish trend unchanged, as the currency finished slightly higher against the Dollar. The pair is trading slightly higher today after the release of the better than expected Australian Retail Sales report.
Our assessment: AUD/USD still trades in a short-term uptrend. The 0.75 level lies ahead as resistance, while support is found near 0.7350.
