AUD/USD finished on a firmer footing on......>

AUSSIE: AUD/USD finished on a firmer footing on Friday, benefiting from Chinese

policymakers implementing a 20% reserve requirement for trading FX forwards, in

effect making it more expensive for participants to short the yuan.

- The rebound gained momentum to test and slightly breach the important

near-term resistance at $0.7411, although the pair now trades back below

$0.7390, operating at session lows as European traders get to their desks. A

sustained move above $0.7411 would restore the bullish picture, shifting the

focus to the upper end of the recent trading range, where the next layers of

resistance are formed at $0.7466/86. Holding above $0.7370 is now required to

maintain the positive momentum, failure risks a slip back to the lower end of

the range and major trendline support at $0.7324.

- AUD traders will look to today's Chinese Current A/c data. Over the week AU

interest will centre on tomorrow's RBA MonPol decision, with universal exp. for

the Bank to leave it's cash rate unch., while the Bank is set to maintain it's

glass half full approach. There will also be interest in the release of the

Bank's SOMP on Friday. Elsewhere AUD traders eye a slew of Chinese data.