AUD initially benefitted from a modestly.....>

AUSSIE: AUD initially benefitted from a modestly stronger than expected wage

print, which allowed the currency to run towards some well trodden figures in

its major crosses. AUDUSD moved to 0.7900, while AUDNZD had a look above 1.0750.

Since then the AUD has given back its gains and now sits at worst levels for the

session.

- The completed construction work print for Q4 was notably softer than expected,

and the modest beat on the wage data is unlikely to alter the picture for RBA

monetary policy, as a result the bill strip sits relatively unchanged, with the

white contracts flat to a tick lower & markets pricing a circa 55% chance of at

least 1 hike from the RBA in 2018.

- In the AUDUSD bears look for a close below $0.7867 to shift focus back to

$0.7229-0.7807 where 100 & 200-DMAs and the bull channel base are noted. Below

$0.7729 shifts focus to $0.7500 Dec lows. Above $0.7989 returns focus to

$0.8118-62 where 2018 highs are noted.

- Immediate focus also falls on the A$3.27bln AUDUSD 0.7950 option expiry

rolling off the board at Wednesday's NY cut.