AUD/USD shed 10 pips overnight, landing at...>

AUSSIE: AUD/USD shed 10 pips overnight, landing at $0.7007, where it sits at

writing. The Aussie was weighed on by NAB's decision to change its RBA call to

two 25bp cuts to the policy rate in July and November of this year, before the

latest Chinese trade data, which revealed a narrower than expected trade

surplus, and a particularly weak breakdown, added further pressure to AUD.

- The initial layer of support is provided by the nearby lower Bollinger band

(2%) at $0.7003, which limited losses overnight. Below here opens the Jan 4 low

of $0.6994, followed by the lower Bollinger band (3%) at $0.6953. Conversely,

bulls target the lower 1.0% 10-DMA envelope at $0.7019 and a breach of that

level would open up $0.7054, which represents the 100-HMA.

- Worth mentioning A$1.48bn worth of options with strikes at $0.7000 expires at

today's 1000ET NY cut.

- Australian focus next week turns to remarks from RBA Dep Gov Debelle, as well

as NAB business confidence data, both scheduled for Tuesday.