AUD/USD last trades at $0.6886, 7 pips.......>

AUSSIE: AUD/USD last trades at $0.6886, 7 pips lower on the day. The local

docket is empty today, with trade balance data coming up on Thursday and the

RBA's most recent SoMP due for release on Friday.

- Tuesday saw the rate buoyed as an FT headline re: U.S. considering the removal

of tariffs on China helped risk sentiment, while the RBA left its cash rate

unchanged and did not signal urgency to ease policy further. Selling pressure

emerged in the London morning as USD appreciated rapidly, drawing support from

better U.S. Tsy yields and a beat in ISM non-m'fing print. That being said,

although the rate trimmed gains as a result, the Aussie remained the best G10

performer at the end of the day.

- Bulls continue to target $0.6925/30, which represent the 61.8% retracement of

the Jul 19 - Oct 2 slide/the high of Oct 31. The significance of this area is

strengthened by the fact that the pair peaked at $0.6928 yesterday. Bears look

for a dip under the mid-point of the aforementioned Jul - Oct slide, which has

provided support since the beginning of this week. Below opens the 100-DMA,

which kicks in at $0.6851.