EUR/AUD shoots up and steadies post Capex

FXStreet (Guatemala) - EUR/AUD is currently trading 1.4484 with a high of 1.4489 and a low of 1.4401.

EUR/AUD is well bid and shot up from the 1.4405 level and is attempting the 1.4488 resistance here on the back of a poor Capex number from Australia. Private Capital Expenditure (Q4) data read as -2.2 vs -1.9 expected and 0.6 previous. However, looking ahead, most of the focus on Aussie will be the RBA next week while markets speculate as to where the bank will cut again this time around.

AUD/USD was slightly less dramatic but has nevertheless lost over a half a cent since the data. The RBA meting is up next week and that is likely to drive more action while the markets try to predict if the Central Bank or will not act again so soon. However, looking ahead, most of the focus on Aussie will be the RBA next week while markets speculate as to whether the bank will cut again this time around. Technically, the cross will remain bid with bulls on control as the euro stabilises but 1.4520 is required to the alleviate the downside pressure.