AUD/USD last seen at $0.7030, virtually......>

AUSSIE: AUD/USD last seen at $0.7030, virtually unchanged on the day, ahead of

the release of Aussie trade balance and retail sales at 0030GMT/1130AEDT.

- On Wednesday, a softer than forecasted Australian GDP print, followed by J.P.

Morgan's decision to revise its RBA call to two 25bp cuts in Jul and Aug this

year, dragged AUD to the bottom of the G10 pile, allowing AUD/USD to touch the

lowest levels since early January. The rate finished ~50 pips lower.

- Elsewhere, Macquarie also changed their call yesterday and now looks for 50bp

worth of easing from the RBA during 2019, but their call had less impact on the

market.

- Wednesday's speech from RBA Gov Lowe had little to no impact on price action.

Lowe noted that a scenario in which the Bank will need to hike this year is

highly unlikely.

- Bears look for a break below the lower Bollinger band (3%) at $0.6993, which

would allow them to target the lower 2.0% 10-DMA envelope at $0.6967. On the

topside, initial focus falls on the lower 1.0% 10-DMA envelope at $0.7038. Above

here opens $0.7068/69, which represents the cloud base/top.