AUD/USD sits slightly higher at $0.6966,.....>

AUSSIE: AUD/USD sits slightly higher at $0.6966, after adding 37 pips yesterday.

- Upside momentum was ignited yesterday as RBA Gov Lowe said that he sees limits

to further monetary easing. Worth stressing, however that context was important

- Lowe pointed to the fact that most major central banks are expected to cut

rates, which makes easing less effective, and called for more fiscal spending.

- AUD remained buoyant nonetheless, only dipping somewhat (albeit with a lag)

after Westpac joined the banks which recently front-loaded their RBA easing

forecasts.

- AUD/USD remained elevated, however, and advanced further, breaching its prior

highs and the trendline resistance at $0.6967 into the WMR fix.

- With the rate threatening the 50-DMA at $0.6971, bulls need a break here to

expose the upper 1.0% 10-DMA envelope at $0.6980, ahead of the cloud base,

located a further 11 pips above. Meanwhile, bears need a fall below the 21-DMA

at $0.6935 before challenging $0.6919, which represents the 100-HMA.

- The London morning will see comments from RBA Asst Gov Bullock, while private

sector credit data comes out on Friday.