AUD/USD last $0.7235, as the USD trades a....>

AUSSIE: AUD/USD last $0.7235, as the USD trades a touch softer at the start of

the session as Brexit headlines weigh on the greenback, after the pair benefited

from warmer tones re: U.S.-China trade relations on Tuesday.

- Rate remains above its 50-DMA & broken down trendline

resistance-turned-support from the Feb highs at 0.7160/50, which keeps the

recovery intact for now. However, a break below this area would return the focus

to the downside and the Oct 26 low at $0.7021. Bulls look to take out the

$0.7300 level which has so far proved hard to overcome and is growing in

importance.

- Focus on AU wage price data at the bottom of the hour. Last week's SoMP saw

the RBA leave its longer run CPI exp. unchanged. The RBA re-affirmed it sees no

need for a near-term hike, though it signalled increasing employment could fuel

domestic inflation down the line, as the RBA noted that "a gradual pick-up in

wages growth is expected as the econ continues to improve & is likely to be

necessary for inflation to be sustainably within the target range. There remains

considerable uncertainty about how soon & how quickly this might occur."