AUD shrugs off RBA rate cut to hit best.......>

FOREX: AUD shrugs off RBA rate cut to hit best levels in a fortnight

-A 25bps cut to the RBA cash rate was clearly well signposted by markets and the

central bank, with the AUD gaining slightly against most others ahead of the NY

crossover. AUD/USD edged higher to touch $0.6993, with focus turning to RBA

governor Lowe's speech at 1030BST now eyed for path guidance. Some of the

resilient AUD flow follows the big banks in Australia not transmitting the

entirety of the 25bps cut to their customers: ANZ trimmed their key variable

rate by 18bps and Westpac by 20bps.

-Slightly lower than expected Eurozone CPI estimates for May did little to work

against the EUR, with EUR/USD managing to hold much of the Monday gains to trade

either side of $1.1250. Fib resistance sits ahead at $1.1284 which could contain

the pair going forward. TRY is extending gains against the USD following the

close below the 50-dma last week. USD/TRY is now on course to break below 5.80

for the first time since mid-April.

-US factory orders and final April durables goods numbers are the data highlight

Tuesday, with Fed's Williams, Powell and Brainard also scheduled to speak.