AUD/USD has inched lower from the off,.......>

AUSSIE: AUD/USD has inched lower from the off, testing Monday's trough. The pair

still sits slightly lower at $0.6879. Aussie services PMIs were mixed. The AiG

survey revealed a faster expansion, while the final CBA reading printed at 50.1

vs. the flash 50.8. The highlight of the day is the RBA monetary policy

decision; our comprehensive preview can be accessed at http://tiny.cc/RBANov.

- To recap, perceived improvement in the mood music surrounding Sino-U.S. trade

relations supported the pair through Monday's Asia-Pac session, even as worse

than expected Australian retail sales triggered a leg lower. That said, the rate

sold off through the rest of the day as rising U.S. Tsy yields lifted USD. 

- Pushing against earlier press reports, Aussie Treasurer Frydenberg said that

there will be no change to the gov't's MonPol agreement with the RBA now.

- Bears look for a dip below the 50% retracement of the Jul 19 - Oct 2 slide at

$0.6876, which has provided support so far, and the $0.6851 100-DMA. Bulls eye

the 61.8% retracement of the aforementioned range/Oct 31 peak at $0.6925/30.

- Remaining points of note on the Aussie docket this week are trade balance

(Thursday) and the RBA's most recent SoMP (Friday).