AUD/USD operates at $0.7205, 21 pips lower...>

AUSSIE: AUD/USD operates at $0.7205, 21 pips lower on the day, heading into the

RBA MonPol decision at the bottom of the hour, after soft local data weighed on

AUD early on.

- With little change foreseen in the Bank's broader outlook focus will fall on

any clues surrounding the Bank's GDP exp. (currently 3.25% for 2019 & 3.00% for

2020), scheduled for official publishing in the SoMP on Friday.

- Elsewhere, the Bank's view on inflation and labour market dynamics will garner

interest.

- As a reminder, the Bank has reiterated that it believes that the next move in

its cash rate will be higher. Most expect this to be reiterated, in either the

SoMP, or minutes from the meeting.

- BBG's WIRP interpolated OIS model shows that markets are pricing a ~40% chance

of at least 1 cut by year end, while the IB strip prices closer to 50% chance of

such a move.