AUD/USD added 15 pips overnight, aided by....>

AUSSIE: AUD/USD added 15 pips overnight, aided by comments re: fiscal stimulus

coming from the Chinese FinMin. The pair knee-jerked lower after AU retail sales

missed market forecast, but the move was quickly retraced, as the latest

Australian trade balance data revealed a wider surplus than exp. AUD/USD last

trades at $0.7047.

- The Aussie shrugged off UBS' decision to follow the footsteps of J.P. Morgan

and revise its RBA call to two more 25bp cuts in July and August of this year.

UBS effectively front loaded their earlier view, as they were already looking

for 2 RBA cuts, 1 in Q4 2019 and in Q1 2020.

- Initial resistance noted at the cloud base, located at $0.7068. A break above

would open up the cloud top at $0.7091. Conversely, bears look for a fall below

the lower 1.0% 10-DMA envelope at $0.7034, which would encourage them to target

the Jan 4 low of $0.6994.

- The Australian economic calendar for the remainder of this week is virtually

empty.