AUD retains a firm tone in Europe after......>

AUSSIE: AUD retains a firm tone in Europe after picking up a bid tone after the

RBA delivered their monetary policy decision. While leaving the cash rate

unchanged, Governor Lowe noted that some of the global risks have lessened

recently and highlighted lags in the transmission of earlier decisions. Rate has

edged to $0.6856 and looks to extend, with next tech resistance noted at

$0.6863, 61.8% retrace of Oct31 high $0.6930 to the Nov29 low of $0.6754.

However, local traders are keeping in mind the recent forecast by a major local

bank that we could see 2 rates cuts from the RBA next year, with QE expected to

begin in 2H 2020 and have suggested that the air above $0.6850 could become

thin.