AUD/USD has shed 3 pips and trades at........>

AUSSIE: AUD/USD has shed 3 pips and trades at $0.6773, off its earlier low of

$0.6759. The rate took a hit amid a round of risk-off flows triggered as U.S.

President Trump has signed the Hong Kong bill. That said, a spill-over from an

improvement in NZ business confidence has helped pare the initial losses.

- The early leg lower took the rate below trendline support. The next bearish

target is provided by the 76.4% retracement of that rally at $0.6732, followed

by the lower 1.0% 10-DMA envelope at $0.6726. Meanwhile, bulls look to the highs

of Nov 22 & 25 at $0.6803 and the 50-DMA intersecting just 3 pips above.

- Yesterday was an inside day, with broader greenback strength & revisions to

RBA calls from Westpac & RBC prompting AUD/USD to finish the day 12 pips lower. 

- Re: the latter driver, the pair sold off into yesterday's London morning as

both Westpac & RBC boosted their RBA easing calls and said that they expect QE

to be launched in 2H2020 & 2021 respectively.

- Australian Q3 capex data draws the immediate attention; private sector credit

data will be publishes tomorrow.