AUD/USD moved away from worst levels and.....>

AUSSIE: AUD/USD moved away from worst levels and last trades at $0.7076, a dozen

pips worse off on the day. The pair eased off in early Asia-Pac trade, as Dalian

iron ore future tanked after a Brazilian court allowed Vale SA to resume

operations at one of its mines, while RBA's Bullock pointed to a soft housing

mkt and urged lenders "not to tighten too much." Bullock's comments came after

yesterday's release of Australian house price index, which declined by more than

exp., and against the backdrop of the RBA's continued concern with the impact of

falling house prices on consumption. Also worth noting market exp. for the RBA

to cut its already record-low cash rate by the year-end have recently increased.

- Bears look to the cloud base at $0.7068, followed by the lower Bollinger band

(2%) at $0.7009. Meanwhile, bulls look for a return above the 100-HMA at

$0.7086, breached overnight, ahead of yesterday's high of $0.7111..

- Australian focus turns to domestic labour mkt report due tomorrow. As a

reminder, the RBA stressed the "particular importance" of labour mkt

developments to domestic econ outlook in its latest meeting minutes.