AUD/USD remains capped under 0.6800, eyes on US Q2 GDP data

• AUD/USD strengthens near 0.6790 in Thursday’s early Asian session. 
• Australia’s private capital spending dropped by 2.2% in Q2 vs. 1.0% prior, weaker than expected. 
• The second estimate of US Q2 GDP growth numbers will be in the spotlight on Thursday. 

The AUD/USD pair trades on a stronger note around 0.6790 on Thursday during the Asian trading hours. The hotter-than-expected Australian CPI inflation data push back the expectation of a rate cut by the Reserve Bank of Australia (RBA) and provide some support to the Aussie. 
Australia’s private capital spending dropped by 2.2% in the second quarter (Q2) from an increase of 1.0% in the previous quarter, the Australian Bureau of Statistics showed Thursday. This figure was below the estimation of 1.0%. Meanwhile, spending on buildings and structures slid by 3.8%, while plant and machinery declined by 0.5%. 
The Australian inflation data on Wednesday appeared insufficient to trigger the Reserve Bank of Australia (RBA) rate cut expectations, which has lifted the Aussie against the USD. The country’s monthly CPI inflation eased to 3.5% from 3.8% in June, but higher than expectations of 3.5%. Investors will take more cues from the Australian Retail Sales, which are due on Friday. 
The US Federal Reserve (Fed) signaled that lower interest rates are finally on the horizon, which weighs on the USD broadly. Fed Chair Jerome Powell said at Jackson Hole last week that “the time has come for policy to adjust.” However, the weakness in the job market is also playing a role in nudging the Fed to ease borrowing costs. The US Nonfarm Payrolls for August next week will be closely watched. Later on Thursday, traders will focus on the US GDP growth numbers for the second quarter in the second estimate, which is forecast to expand by 2.8%.