AUD fell afoul of the broader USD strength...>

AUSSIE: AUD fell afoul of the broader USD strength in NY hours, after softer

than expected domestic CPI led to the front loading of bets re: RBA rate cuts in

Asia-Pacific hours.

- That being said, RBA watcher Terry McCrann provided some brief respite as he

suggested that "the very low inflation numbers open the door to an official

interest rate cut, but the Reserve Bank will not walk through it at its next

meeting on Tuesday week."

- AUD/USD last deals at $0.7014, and has threatened to challenge $0.7000 on a

couple of occasions in the last 12 hours, although the March 8 low of $0.7003

has shielded the big figure. A break below the round number would open the

nearby January 4 low at $0.6994, followed by the lower 2.0% 10-DMA envelope at

$0.6984. Bulls need to regain the $0.7100 level while a break back above the

200-DMA at $0.7182 would shift the outlook positive.

- As a reminder, Australia is observing ANZAC Day today, so AUD liquidity may be

depleted.