AUD has erased its earlier strength after....>

AUSSIE: AUD has erased its earlier strength after the release of the local

housing finance data & the RBA's SoMP. As a reminder, the initial gains stemmed

from headlines, which cited a White House spokeswoman as saying that the U.S. is

very optimistic about trade talks with China.

- Housing finance figures were mixed. Home loans and owner-occupier loan value

increased more than expected, while investment lending shrunk 4.0% vs. forecasts

of a 1.5% increase. The September numbers were accompanied by decent revisions

to the prior prints.

- Meanwhile, the SoMP noted that the "economy is gradually coming out of a soft

patch," adding that slow wage growth will likely "keep domestic inflation

pressures contained." GDP outlook is slightly flatter, with unemployment

forecasts unchanged & trimmed mean inflation not seen back at ~2.0% until after

June 2021. See the updated economic outlook from the report at

https://emedia.marketnews.com/marketnewsintl/RBA_SoMP.PNG.

- AUD/USD last sits at $0.6889, 9 pips worse off. The rate remains fairly

range-bound, familiar technical levels intact. AUD underperforms its G10 peers.