Dire Capex Data Sees Aussie Slide Further

Morning Report: 07.00 London

• This morning, the US dollar is still in the driving seat as it looks set to post another positive session.

• The big loser today is the Australian dollar after private Capex data came in well below estimates to send the Aussie skidding lower.

• The yen pairs are continuing their ascent led by the EUR/JPY which is rallying for the third straight day.

• On stock markets, traders are pausing after a powerful rebound for the S&P 500 yesterday.

                           
              
Coming up today:

• Coming up today we have second estimate GDP for the UK released alongside preliminary business investment at 09.30.

• This is followed by Canadian current account data and RMPI at 13.30. US unemployment claims are released at the same time.

• Following this we have US pending home sales at 15.00 and US crude inventories at 16.00.

Trade Idea:

• When the Aussie catches a trend, it can run and run (in either direction). With the US dollar coming back to life, we could see further downside from here.

                           
                                                
A good way to play this is a LOWER trade predicting that the AUD/USD closes below 0.7700 in 7 days time for a potential return of 101%.

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Summary: