AUD/USD defied gravity Tuesday, owing to.....>

AUSSIE: AUD/USD defied gravity Tuesday, owing to central bank action affecting

either side of the pair. The Aussie picked up a bid as the RBA "only" delivered

a 25bp cut to the cash rate, noting that domestic economy should "return to an

improving trend" once the coronavirus is contained. The Fed later delivered a

blow to the greenback by cutting their benchmark rate by 50bp, in the first

inter-meeting decision since 2008. The rate printed highs at $0.6645 just ahead

of the WMR fix before slightly correcting the rally into the close, as risk

aversion remained.

- The pair trades + 6 pips at $0.6590. Yesterday's peak at $0.6645 provides the

initial bullish target & a break above there would shift focus to the 38.2%

retracement of the Dec 31 - Feb 28 move at $0.6662. Bears look for a pullback

towards the recently printed 11-year low of $0.6434.

- Little to note in the latest PMI data out of Oz. AiG construction PMI & final

CBA services/comp tallies were slightly better, but still in contraction.

- Australian Q4 GDP headlines the local docket today. Trade balance & retail

sales are due Thursday & Friday respectively.