AUD/USD last deals at $0.6878 after..........>

AUSSIE: AUD/USD last deals at $0.6878 after dropping 30 pips overnight, as the

RBA's shift to an easing bias more than offset the earlier positive impact of

APRA's proposal to loosen mortgage lending conditions.

- AUD took a hit from RBA Gov Lowe's remark that RBA members "will consider the

case for lower interest rates" at the next MonPol meeting. In the subsequent Q&A

session Lowe admitted that it is "fair enough" to say that the RBA has adopted

an easing bias. 

- Lowe's comments came after the minutes from the central bank's latest MonPol

meeting noted that a rate cut would be appropriate in case of no further

improvement in the labour market.

- Bears look to the 76.4% fibo retracement of the year's range at $0.6872. A

breach of the figure would expose the lower 1.0% 10-DMA envelope at $0.6865,

where the rate bottomed on May 17. Above $0.6900 would shift bullish focus to

the 200-HMA/downtrend resistance at $0.6939/40.

- Australian skilled vacancies data, due tomorrow, may provide some interest, as

the RBA rhetoric draws attention to labour market developments.