AUD/USD is heavy again today on the back of emerging market losses, but its relatively limited fall suggests it could avoid a deeper slide.
Some of this resilience could be attributed to the latest Q2 CAPEX report.
While the headline number was well below forecasts, spending plans for 2018/19 were upgraded nicely nL3N1VL1PJ.
The upgrades to spending plans could drive economic growth and employment upwards.
That, in turn, could help the RBA maintain rhetoric suggesting the next move in rates will be higher, which should underpin AUD/USD. One key problem, though, is that technicals don't yet favor bulls.
The pair is trading below the 10-, 21- and 55-DMAs, appears set to close the month below the 61.8 percent Fib of 0.6827-0.8136 and RSIs are biased down.
Bulls need a break above resistance in the 0.7370/0.7400 and 0.7450/90 zones to change longer term bear sentiment.
chart: Click here