AUD/USD has edged lower and deals at.........>

AUSSIE: AUD/USD has edged lower and deals at $0.6998 at writing, 10 pips worse

off on the day. This comes after the pair closed 21 pips higher yesterday,

reversing its early Asia-Pac nose dive, which saw the cross register an intraday

low of $0.6741 (a level not seen since 2009), but quickly pared a chunk of the

initial losses and found further support on the back of soft U.S. economic data

(namely the ISM m'fing survey), as the USD weakened. 

- Initial bearish focus falls on the 23.6% fibo retracement of the move from

$0.6741 to $0.7019 at $0.6954. A move through that level would open up the lower

Bollinger band (2%) at $0.6935. Conversely, bulls need to jump back above

yesterday's peak at $0.7019 before challenging the Jan 2 high of $0.7054. 

- Australian focus next week turns to domestic trade balance due Tuesday and

retail sales due Friday.