AUD on the backfoot as RBA cautious on........>

FOREX: AUD on the backfoot as RBA cautious on wages

-The bulk of G10 FX trading this morning has been quiet, with volumes

particularly thin as markets wait out for the key Fed decision tomorrow. One of

the more interesting currencies though, has been AUD, which falls against most

others in G10 following RBA minutes overnight. The release was broadly inline,

but participants focused on cautious wording around wage growth, in which they

noted the upward trend in local pay packets appears to have stalled. AUD/USD

edged back below the $0.6849 50-dma in the process.

-With data and markets quiet, traders have been ruminating over the USD funding

squeeze evident in repo market rates Monday. The global scramble for USD

followed the toxic mix of corporate tax payment requirements, margin calls

following the oil spike, the Japanese holiday and Tbill coupon settlements.

Markets now mull over the possible impacts on the FOMC decision Wednesday.

-US industrial production data is the calendar highlights, alongside the NAHB

housing market index and speeches from ECB's Villeroy, Lane and Coeure.