AUD/USD last trades at $0.7120, 7 pips.......>

AUSSIE: AUD/USD last trades at $0.7120, 7 pips higher on the day, after adding

29 pips Monday, although broader risk-off flows applied some modest pressure to

AUD in early Asia-Pac hours. Subsequent recovery, mostly stemming from USD

weakness inspired by soft U.S. Tsy yields, allowed the rate to peak at $0.7117

and close only a handful of pips below.

- RBA Assistant Governor Ellis spoke today, noting that although the labour mkt

has "unambiguously improved," soft income growth is weighing on household

consumption. Ellis emphasised the role of non-labour income, as wages are "not

especially strong," but "no longer at odds with growth in employment."

- Bulls look for consolidation above the aforementioned Monday's high and

Friday's high of $0.7119 before shifting focus to the 50-DMA, located at

$0.7128. On the downside, bears look for a retreat through the 200-HMA/21-DMA at

$0.7095/93 towards $0.7066, where the rate bottomed yesterday.

- This week in Australia is quite data-light, with private sector credit data

due on Friday, while RBA's Kent will speak tomorrow. Elsewhere, any fallout from

the Sino-U.S. trade talks will also provide interest.