AUD/USD challenged $0.7400 on the back of....>

AUSSIE: AUD/USD challenged $0.7400 on the back of the latest RBA decision, but

has stuck to a sub-20 pip range, last $0.7395.

- The RBA left the cash rate unch. at 1.5% as exp., maintaining its central view

on the AU econ, but adopted a more downbeat tone on the Chinese econ &

highlighted the risks from U.S. trade pol. The Bank flagged lower inflation in

'18, with slightly higher inflation in '19 & '20, giving a nod to adjustments in

the SOMP. The Bank also stated that it exp. the jobless rate to decline over the

next couple of years, to ~5% (prev 5.25%), perhaps another adjustment for the

SOMP. On housing the Bank continued to note the decline in Sydney & Melbourne

prices. The Bank also noted the recent downtick from cycle highs in funding

rates & also pointed to avg. mortgage rates being lower than a year ago.

- The pullback from Friday's rebound high at $0.7412 stalled at $0.7374, keeping

the prospect of a resumption of the uptrend intact. Bulls need a close above

$0.7412 to shift focus to the upper end of the recent trading range, with the

the next layers of resistance formed at $0.7466/86. Bears now look to close

below major trendline support at $0.7324 for confirmation.