AUD/USD holds support amid Capex miss, RBA cuts eyed – BBH

AUD/USD is holding above key support at 0.6400 but faces near-term resistance between 0.6500-0.6540, BBH FX analysts report.

1Capex disappointment weighs, but AUD holds 0.6400

"Australia private new capital expenditure (capex) unexpectedly contracted over Q1. Capex fell -0.1% q/q (consensus: 0.5%) vs. 0.2% in 4Q (revised up from -0.2%) driven by a -1.3% q/q decline in equipment, plant and machinery."

"Encouragingly, the second estimate for planned capex for 2025-26 was up 6.7% to A$95.6bn from the first estimate. RBA cash rate futures continue to price-in a total of 75bps of cuts to a low of 3.10% in the next 12 months."