AUD/USD added 14 pips overnight, but.........>

AUSSIE: AUD/USD added 14 pips overnight, but remains stuck in a familiar range.

Stronger than exp. central yuan fixing from the PBoC & the Australian Work

Commission lifting minimum wages by 3.0% proved supportive, despite trade war

worries and underperforming equities. The Aussie also ignored the fact that

Fitch now exp. Australian GDP growth to slow to 2% this year, which would be the

worst pace since the financial crisis.

- Australian data failed to provoke more than a short-lasting knee-jerk lower,

as decent revisions in the second est. of 2019.20 capex negated softer than exp.

Q1 capex & building approvals prints.

- AUD/USD last seen at $0.6931. A breach of the 21-DMA at $0.6941 would expose

the 61.8% fibo retracement of the YtD range, which comes in at $0.6953. Above

here brings the upper 1.0% 10-DMA envelope at $0.6975 into play. Bears look for

a dip below $0.6904, which provided support yesterday, before challenging the

May 24 low of $0.6881.

- Tomorrow's release of private sector credit data out of Australia is of note.

Focus will also fall on China's official PMI readings.