AUD lags on mortgage rate rise, SEK...........>

FOREX: AUD lags on mortgage rate rise, SEK re-targeting multi-year lows

-Broader G10 FX space trades either side of unchanged, with the DXY marginally

higher with little newsflow on either side of the pond to drive price action.

AUD is the biggest faller so far, dropping through Monday's lows and testing

$0.73 following Westpac's decision to lift domestic mortgage rates - a step that

will make it far more difficult for the RBA to lift rates in the near future.

-SEK also underperforms, with EUR/SEK re-targeting yesterday's (and nine year)

highs of Sek 10.7210 with various sell-side analysts reiterating their bearish

view this morning. SEK's underperformance is also feeding through to NOK, which

is falling against most others so far today.

-CAD rallied overnight on renewed NAFTA optimism, with reports suggesting

Trudeau was prepared to make dairy concessions in order to cinch a tripartite

deal with the US and Mexico. USD/CAD re-tested yesterday's C$1.2888 lows, but

pared the move as a resolution is still seen as far off.

-The calendar's relatively light, with markets beginning to eye month-end flows.

Data focus turns to US GDP numbers and pending home sales data.