AUD/USD had made marginal improvements to....>

AUSSIE: AUD/USD had made marginal improvements to Monday's gains, aided by

AUD/JPY's close above some key moving averages, but a modest degree of USD

strength over the last couple of hours has seen the cross revert to unchanged

levels around $0.7465.

- Today's headline AU NAB business survey prints were stable, although the

breakdown revealed no sign of a pick-up in the inflationary measures. All of the

survey's key price measures edged lower in June. Added to this was a drop in

employment sub-index, though the current level is still consistent with jobs

growth of ~20K a month. Still it may not be sufficient to push the jobless rate

gradually lower especially if there is an increase in labour participation.

AUD/USD paid little attention to the release.

- Bulls now need a close above the 55-DMA ($0.7499) to hint at a move back to

$0.7611-0.7735. Daily studies are well placed for a fresh leg higher before

overbought becomes an issue. Bears now need a close below the 21-DMA ($0.7419).

The remainder of the week provides little in the way of domestic risk events, so

focus is likely to remain on the global risk environment.