Aud lifted in local time by release of........>

FOREX: Aud lifted in local time by release of stronger than forecast Retail

Sales (0.5%mm vs forecast 0.3%), the buoyant tone remaining as the RBA kept

rates unchanged as widely expected, slight optimism noted on wage growth

outlook. Hawkish headline comments from RBNZ acting governor Spencer boosted

NZ$. Sterling consolidated Monday's moves in Asia, having been lifted earlier

yesterday by expectations that progress was being made in the Brexit

negotiations only to be thwarted by the governing Conservative's coalition

partner DUP as they voiced concerns concerning Northern Ireland's position post

Brexit. However, fresh sterling sales hit a very thin market which eventually

took cable to an extended low of $1.3371, as Eur/Gbp was hoisted to Gbp0.8868.

Brexit headlines were cited for main moves. Sterling deid manage to claw back

some lost ground late morning as PM May expected to meet DUP, reportedly

clearing her diary for another appearance in  Brussels Wednesday. Pressure moved

from sterling and onto the Eur as this rate was pressed down to $1.1842 though

was holding off worst level late morning. Release of Services PMI data in EZ and

UK provided little market reaction.