AUD/USD holds steady at $0.6852, just........>

AUSSIE: AUD/USD holds steady at $0.6852, just below its 100-DMA. Flash CBA PMI

readings for October indicated a slowdown in the expansion of Australian

manufacturing and services sectors as all three indices (m'fing, services, comp)

remained above the breakeven 50 level, just. CBA pointed to "a softer pace of

jobs growth," adding that they expect a 25bps cash rate cut in February.

- A broader risk aversion inspired by spiralling Brexit uncertainty dragged the

rate lower in yesterday's Asia-Pac sesion, with downside momentum kicking in at

the Tokyo equity open. European and U.S. hours saw AUD/USD trade sideways before

a late doors recovery allowed it to finish just below neutral levels.

- Bulls need to regain momentum and a push above Tuesday's high of $0.6883 would

play into their hands. The next topside target is provided by the key Sep 12

peak at $0.6895. Bears look for a dip through the $0.6834-32 area, which hosts

yesterday's low, the Oct 17 high, the 23.6% retracement of the Oct rally & the

38.2% retracement of the Jul-Aug slide. Below clears the way to $0.6800.

- With no more Aussie data releases left this week, the focus turns to global

risk developments. U.S. VP Pence will deliver his China speech on Thursday.