AUD underperformed overnight on the back.....>

AUSSIE: AUD underperformed overnight on the back of RBA Governor Lowe's speech

which alluded to neutral guidance in rates and slightly lower inflation/GDP

forecasts which are expected to be confirmed in Friday's SoMP. AUDUSD slipped 90

pips on the session back through the 100-dma ($0.7173) and extended the

downtrend into Europe. Rate touched pullback lows of $0.7133 with bears

targeting a break of the $0.71 level, before challenging $0.7084 which

represents the 38.2% retracement of $0.6741-0.7295. AUDNZD slipped sharply

towards the NZ$1.04 level which is reported to hold solid demand. EURAUD moved

through the 100 & 200-dma's to A$1.5960 with topside focus on a break back above

A$1.60, before challenging the Jan 24 high at A$1.6038. While AUDJPY cleared the

21-dma (Y78.48) to print extended pullback lows of Y78.27.