The Australian Dollar (AUD) holds steady against the US Dollar (USD) following the release of stronger-than-expected Private Capital Expenditure on Thursday.
Australia's total new capital expenditure rose by 1.1% quarter-on-quarter in the third quarter, surpassing market expectations of a 0.9% increase and rebounding from a 2.2% decline in the previous quarter.
However, the AUD/USD pair may face downward pressure as the United States (US) is set to unveil additional measures on Monday aimed at curbing China's ability to advance in artificial intelligence technology. Given the close trade ties between Australia and China, any significant shifts in China's economy are likely to ripple through Australian markets.
Additionally, the Australian Dollar faced challenges due to dampened market sentiment following President-elect Donald Trump's announcement of a 10% increase in tariffs on all Chinese goods entering the United States.
The downside of the AUD was restrained due to the Reserve Bank of Australia's (RBA) hawkish outlook on future interest rate decisions.
Source: FXStreet
