AUD/USD shed over 50 pips overnight and......>

AUSSIE: AUD/USD shed over 50 pips overnight and last trades at $0.7031, with the

Aussie underperforming all of its G10 peers. AUD struggled on the back of a soft

domestic Q4 GDP release, which printed at +0.2% Q/Q and +2.3% Y/Y, missing MNI

exp. of +0.3% and +2.5% respectively. The Y/Y measure also missed the RBA

forecast of +2.8%. Also worth mentioning that household consumption was +0.4%

Q/Q and +2.0% Y/Y, marginally missing the RBA exp. of +2.1% Y/Y.

- The rate then came under additional pressure from J.P. Morgan's decision to

alter its RBA call to two 25bp cuts in July and August this year, following a

similar revision by Nomura on Monday. Elsewhere, Macquarie also now looks for

50bp worth of easing from the RBA, but their call had less impact on the market.

- AUD largely ignored remarks from RBA Gov Lowe, who noted that "it's hard to

think of a scenario where interest rates would need to go up" in 2019.

- Bears look for a breach of the $0.7000 mark before challenging the lower

Bollinger band (3%) at $0.6993, while bulls need a move back above the 1.0%

10-DMA envelope at $0.7038 before targeting the cloud base/top at $0.7068/69.

- AU focus turns to domestic sales & trade balance, which come out tomorrow.