AUD/USD dropped 44 pips yesterday with the...>

AUSSIE: AUD/USD dropped 44 pips yesterday with the Aussie faring particularly

badly across the G10 FX space. The combination of sagging industrial metals and

a disappointing Australian NAB cons. confidence took its toll on the Antipodean

currency, while broader USD strength didn't help any recovery attempts.

- AUD/USD last trades at $0.6929, almost unchanged. The rate is hovering just

above the trendline resistance-turned-support at $0.6917, which limited losses

yesterday. A break would suggest the resumption of a downtrend. Meanwhile, bulls

look to $0.6949/53, which represent the 50-DMA & 21-DMA/the mid-point of the YtD

range.

- Terry McCrann wrote that "there's a good reason we won't be getting another

rate cut any or more gov't handouts any time soon," and that is the fact that a

number of significant stimulants have already been applied to the economy over a

short period, which makes it a good moment to take a pause and watch.

- Westpac will publish its consumer confidence survey for Australia later today,

while RBA Dep Gov Debelle speaks tomorrow.

- Chinese inflation data, due later today, may also provide some interest.