AUD/USD is back to nearly unchanged..........>

AUSSIE: AUD/USD is back to nearly unchanged levels, as broader yuan strength,

stemming from yesterday's BBG story re: the U.S. asking China for assurances of

future yuan stability, allowed the pair to shake off earlier pressure from

domestic wage data. The rate last sits at $0.7161.

- In early Asia-Pac dealing, the Aussie was weighed on by a modest miss for the

AU Q4 Q/Q wage price index, which printed at 0.5% vs. exp. & prev. 0.6%. Worth

noting the Y/Y reading met consensus at 2.3%, but missed the RBA's exp. of 2.4%.

The RBA will be concerned with wages remaining stagnant despite low

unemployment, although it exp. a gradual uptick in wages to support inflation.

- The initial layer of support is located at $0.7161, which represents the

100-DMA, ahead of the 21-DMA at $0.7152. A clean breach of these levels would

open up the 50-DMA at $0.7135. On the topside, initial attention is drawn to the

1.0% 10-DMA envelope at $0.7185, followed by the psychological $0.7200 level.

- Australian focus this week turns to domestic labour mkt data due tomorrow &

RBA Gov Lowe's parliamentary testimony due Friday. Fallout from Sino-U.S. trade

talks will also be of interest.