AUD/USD defied gravity and closed 28 pips....>

AUSSIE: AUD/USD defied gravity and closed 28 pips higher Tuesday after the RBA

pointed to lessening global risks, while leaving their cash rate unchanged as

widely expected. The rate extended gains into the European morning, but met

resistance from the 61.8% retracement of its Oct 31 - Nov 29 slide at $0.6863

and receded as U.S. Pres Trump signalled no urgency for striking a trade pact

with China. Subsequent price action was contained in a ~20 pip range.

- AUD/USD last deals at $0.6851, marginally higher on the day. The

aforementioned $0.6863 fibo retracement provides the initial topside target.

Bulls need the rate to clear the level, before taking aim at the $0.6918

200-DMA. Meanwhile, a retreat under the Nov 19 high of $0.6835 would encourage

bears to target the 100-DMA/50-DMA at $0.6817/10.

- The pair has looked through the local services PMIs from CBA & AiG. The former

improved but remained in contraction, the latter pointed to a slower expansion.

- Australian Q3 GDP is the local highlight today, with retail sales and trade

balance due to follow on Thursday. Today's Caixin services and composite PMIs

out of China may also be of interest.