AUD/USD holds steady at $0.6994 after........>

AUSSIE: AUD/USD holds steady at $0.6994 after rising 28 pips Tuesday, in spite

of the second 25bp cut from the RBA in a row, in line with market expectations.

- In the accompanying statement, the RBA said that it is ready to adjust policy.

Subsequent speech from Gov Lowe noted that the Bank "will be closely monitoring

how things evolve over coming months," reiterating readiness to act "if needed."

- As per statements from Australia's big four, ANZ was the only major bank which

passed the full cut on. Westpac reduced its variable rate by 20bp, while CBA &

NAB by 19bp.

- AUD/USD spiked lower on the RBA decision, but immediately retraced the move.

Markets buying the post-RBA dip elevated AUD/USD through the day, allowing it to

test the $0.7000 barrier, albeit without breaching it. 

- Bulls now look for a clean break above the nearby round figure before

challenging the upper 1.0% 10-DMA envelope/100-DMA at $0.7032/34. Bears look to

the 200-HMA/55-DMA at $0.6975/73, ahead of the 50-DMA at $0.6955.

- Australian trade balance and building approvals hit later today, as do

services PMIs from AiG & CBA. Retail sales and job vacancies are due Thursday.