AUD/USD shed 20 pips overnight and last......>

AUSSIE: AUD/USD shed 20 pips overnight and last deals at $0.7081 after the

release of RBA's SoMP, which affirmed Gov Lowe's earlier statement that the risk

to the outlook for interest rates is now more balanced. The central bank also

trimmed its GDP growth exp. across its forecast horizon (aggressively over the

immediate term) and cut the majority of its CPI exp. but left the end of 2020

estimate unchanged. The broader commodity-tied FX space was already under

pressure, as WTI extended yesterday's drop, while worries re: Sino-U.S. trade

relations were still evident. 

- It is worth noting iron ore posted another impressive rally and touched the

best levels since 2014, although MonPol matters have dominated AUD traders'

thoughts this week. 

- Initial support is provided by the cloud top at $0.7068 and a break below

would open up the lower 2.0% 10-DMA envelope at $0.7040. Meanwhile, bulls focus

on the lower 1.0% 10-DMA envelope at $0.7112, ahead of the 50-DMA at $0.7156. 

- AU focus next week turns to domestic home loans due Tuesday, as well as

remarks from RBA's Heath & Kent on Wednesday & Friday respectively.