AUD has understandably struggled on the......>

AUSSIE: AUD has understandably struggled on the back of Trump's China tariff

related tweet tirade, although AUD/USD has managed to move back from reaction

lows, to last deal at $0.6995, 25 pips or so lower on the day.

- Rate is probing below the key $0.7000 level, with bears looking for a close

below the nearby January 04 low at $0.6994 to open the way lower, towards the

61.8% retracement of the move from $0.6741 to $0.7295 at $0.6953. Bulls look for

a quick reclaim of the $0.7000 level, before switching focus to the 50%

retracement of the move from $0.6741 to $0.7295 at $0.7018.

- Domestic Melbourne Institute inflation data provides some interest today, as

does China Caixin services PMI, although more focus will fall on tomorrow's

domestic docket with retail sales and trade data due, but more importantly, the

RBA will issue its latest MonPol decision. OIS currently price in a ~40% chance

of a cut in the cash rate, with 14 of the 26 surveyed by BBG looking for a such

a move.