AUD suffers as climb in mortgage rates........>

FOREX: AUD suffers as climb in mortgage rates bites

-Despite a stellar jobs report in Australia, AUD is comfortably the worst

performer in G10 as markets viewed the latest round of mortgage rate hikes from

the country's domestic banks as forcing the hand of the central bank to keep

rates lower for longer. AUD/USD edged back below the $0.71 handle, touching the

lowest level since Jan4, allowing bears to set their sights on flash crash lows

of $0.6741.

-EUR trades generally lower ahead of the ECB rate decision and press conference

where the bank are expected to strike a somewhat cautious tone as they try to

keep the focus on Summer despite present economic pressures. EUR/USD edged lower

throughout the European morning and now eyes the Tuesday low of $1.1336. Further

disappointing PMI data in Europe added to pressure on the single currency. The

lower EUR helped benefit the CHF so far today, which sits at the top of the G10

pile ahead of the NY crossover.

-Other than the ECB rate decision, attention also turns to weekly US jobless

claims, prelim January US PMIs and Kansas City Fed Manufacturing Activity.