AUD/USD has inched lower and sits at.........>

AUSSIE: AUD/USD has inched lower and sits at $0.6859, 6 pips worse off.

- The rate added 27 pips yesterday as optimism re: U.S.-China trade relations

supported the Aussie. During his most recent speech, RBA Governor Lowe yet again

poured cold water on the possibility of deploying negative rates, but also noted

that the central bank is prepared to ease policy further if needed. AUD/USD

continued to move higher through the rest of the day, even as a U.S. off'l told

RTRS that the trade pact with China may not be ready for signing at the summit

next month.

- Yesterday's breach of the 100-DMA at $0.6850 puts bulls in the position to

target $0.6883, the high of Oct 22. Above opens the Sep 12 peak at $0.6895.

Bears look for a clean break below the aforementioned 100-DMA before setting

their sights on the 23.6% retracement of the Oct rally at $0.6833.

- The highlight of the local docket is Australian Q3 CPI, due at

00:30GMT/11:30AEDT. Building approvals come out on Thursday, while AiG & CBA

m'fing PMIs are due on Friday.