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Australia capex data to drive AUD sentiment

Four key markets in focus today.

AUD/USD

The pair has remained subdued and is currently sidelined below 0.91 heading into today’s key capex numbers. Consensus is for private capital expenditure numbers to show a 1.1% fall when released at 11.30 AEDT. A disappointing figure would result in further AUD selling.

USD/JPY

There was a big rally in USD/JPY with the pair pushing through 102 in a move triggered by a better-than-expected unemployment claims number. The pair traded to a high of 102.19 and was last above 102 back in May. Today we have Japan’s weekly fund flows along with Japan’s retail sales at 10.50 AEDT and this always has potential to cause some yen moves. The May high at 103.74 will be the next level to look out for.

Germany 30 Cash

The DAX rallied to another record high of 9363 and continues to be an outperformer in Europe. This time the gains were triggered by solid consumer climate figures and Angela Merkel finally getting closer to forming a coalition. Later today we have German inflation and jobs numbers due out and this data could see the DAX extend its gains should it impress.

Newcrest Mining

NCM has dropped considerably over the past few weeks and will be in for a real test today when it trades at 2002 and 2003 highs. The $7.75 level is likely to act as near-term support for the miner and if it is broken could result in a further NCM slide. Continuing weakness in gold will also mount pressure on NCM.

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