AUD/USD eked out some gains Tuesday as RBA...>

AUSSIE: AUD/USD eked out some gains Tuesday as RBA Governor Lowe appeared to set

the bar high for the deployment of QE. He noted that the central bank might

resort to bond purchases if the cash rate falls to 0.25%, but such a scenario is

unlikely to materialise any soon and "there is not a smooth continuum running

from interest-rate reductions to quantitative easing." This elevated AUD/USD to

$0.6795 before a corrective pullback prompted the rate to erase gains. Purchases

resumed into the WMR fix, with U.S. Pres Trump's optimistic comments re: trade

talks with China helping to keep AUD/USD afloat.

- The rate holds steady at $0.6787. Bulls would like to see it break above the

50-DMA, which kicks in at $0.6806. Above here would open up the 100-DMA at

$0.6827. Meanwhile, bears keep an eye on the $0.6773-68 area. Not only did it

limit Tuesday's losses, but also hosts the lows of Nov 14 & 25, trendline

support and 61.8% retracement of the Oct bull mkt. A break would expose the

76.4% retracement of that Oct rally.

- Australian Q3 construction work done comes out later today, with capex and

private sector credit data due on Thursday and Friday respectively.