AUD/USD slid to the session low of $0.6779...>

AUSSIE: AUD/USD slid to the session low of $0.6779 before entirely recouping

those losses, as conflicting signals rolled in. The initial sell-off was

inspired by the decision of Citi and NAB to bring their respective RBA easing

calls forward and join the cohort of desks expecting a 25bps cut to the cash

rate in October. A helping hand came from offshore with a lift in Chinese yuan,

inspired by a stronger than exp. PBoC fix and the announcement of a Hong Kong

auction of central bank bills. A weaker USD also helped recovery.

- The rate sits at $0.6797, now a touch higher on the day. Bulls look for

further recovery through the $0.6800 figure towards $0.6831/32, which represents

yesterday's high/38.2 % fibo retracement of the Jul 19 - Aug 7 slide. A close

above is needed to improve the outlook. Bearish focus remains on the 61.8%

retracement of its Sep 3-Sep 12 rally, situated at $0.6767.

- Worth keeping an eye on the news wires as deputy-level envoys from the U.S.

and China meet over the negotiating table. Aussie data highlights next week are

flash CBA survey from CBA (Monday), skilled vacancies (Wednesday) and job

vacancies (Thursday). Tuesday will see RBA Governor Lowe deliver a speech.