AUD/USD extended its corrective pullback.....>

AUSSIE: AUD/USD extended its corrective pullback from the AUD/NZD led gains

above 0.7450 on Thursday to trade back through 0.7400, last ~$0.7370. The

pullback was aided by AUD/JPY moving through its 100-DMA, putting renewed focus

on the $0.7348 area in AUD/USD. Below here bears will look to trendline support

at $0.7324 ahead of the YTD low at $0.7311. Bulls need a close above $0.7484 to

regain traction and challenge the 100-DMA at 0.7527.

- Focus today falls on the RBA's quarterly SoMP. RBA Governor Lowe used an

address on Wednesday to reiterate that he exp. the next move in the cash rate

will be higher, and that he sees no strong case for a near term adjustment. The

most interesting point probably came on inflation, as he noted that he expects

CPI to be close to 2.5% by 2020, the most recent SOMP, which ran through to June

2020, had CPI. exp. at 2.25% at the end of the forecast range. Elsewhere Lowe

pointed to elevated vacancies equating to a tighter labour market, suggesting

room for a lower unemployment rate projection this time out, the last SoMP had a

medium term projection of 5.25% for the unemployment rate.