AUD/USD sits at $0.6878, a touch lower on....>

AUSSIE: AUD/USD sits at $0.6878, a touch lower on the day. Already today we saw

AiG construction PMI out of Australia; the rate of contraction decelerated to

43.9 from 42.6. Trade balance data will be published later today, ahead of

Friday's housing finance figures & the RBA's most recent SoMP.

- The pair was range-bound through yesterday's Asia-Pac trade, with a round of

buying into the London morning lifting it to a new daily high. Subsequent

sell-off accelerated post-WMR fix as RTRS reported that the Trump-Xi summit to

sign the initial U.S.-China trade pact may be delayed until December, while

there still is a possibility agreement won't be reached, although the deal is

more likely than not. A slight recovery into the close allowed AUD/USD to trim

losses and finish just 9 pips worse off.

- From a technical perspective, the initial focus falls on $0.6895, the Sep 12

high. A break above there would bring the Oct 31 peak at $0.6930 into play. On

the flip side, a retreat under the 100-DMA, which kicks in at $0.6850, would

open up $0.6810/09, which represent the 50-DMA/Oct 25 low.