AUD soft as pressure builds on RBA -The.......>

FOREX: AUD soft as pressure builds on RBA

-The Aussie is comfortably the poorest performer in G10 Wednesday as the

currency faced a number of headwinds. Firstly, GDP fell below expectations,

rising just 0.2% Q/Q vs. Exp. 0.3% with household spending a particular soft

spot. Secondly, the poor growth update prompted a number of key RBA watchers to

revise their calls for policy this year, with Macquarie and JP Morgan now

forecasting cuts totalling 50bps this year, the first coming as soon as July.

AUD/USD trades heavy below $0.7050, with bears now eyeing a break below the

$0.70 handle, which would mark the lowest AUD/USD rate since early January (in

the wake of the currency flash crash).

-Elsewhere, FX is largely drifting with little direction, as players sit on the

sidelines ahead of rate decisions from the BoC & ECB as well as the nonfarm

payrolls release Friday. Mixed equity markets have done little to commit USD/JPY

in either direction, but the pair holds close to Y112, which continues to hold

significant option interest.

-Other than the BoC, US ADP employment change and Canada's Ivey PMI are due.