AUD/USD last trades at $0.6885, 7 pips.......>

AUSSIE: AUD/USD last trades at $0.6885, 7 pips worse off. Despite posting some

modest gains post-Tokyo fix, the pair declined eventually, on the back of

comments from Chinese state media, suggesting that China might have lost

interest in continuing trade negotiations with the U.S. as for now.

- Consolidation below yesterday's low of $0.6887 would expose $0.6872, which

represents the 76.4% fibo retracement of the YtD range. Below here opens the

0.6825/40 area which registered a previous series of lows through Jan 2016.

Conversely, bulls need a lift through the $0.6900 mark before attempting a move

at $0.6932/33, which represents the 100-HMA/May 16 high.

- The initial focus falls on Australian federal elections, which take place on

Saturday. The ruling coalition has narrowed the polling gap in the recent

months, but still narrowly trails the opposition Labour Party.

- Points of note next week include the minutes from RBA May MonPol meeting & a

speech from RBA Gov Lowe, both due on Tuesday. CBA PMI gauges come out on

Thursday.