AUD/USD slipped a tad in early trade, only...>

AUSSIE: AUD/USD slipped a tad in early trade, only to bounce from lows. The rate

currently sits at $0.6778, 14 pips higher on the day.

- The initial drop was provoked by APRA's decision to strengthened prudential

standard to limit contagion risk within banking groups, with ANZ noting that

they may have limited capacity to inject capital into its NZ entity. A source

pointed to AUD/USD selling from a U.S. name around these headlines.

- The rate bounced, with gains extended post-RBA minutes. There was little

immediate reaction, as the document revealed little new, but BBG trader sources

pointed to short covering & demand from Australian exporters seeking to hedge

their positions as the central bank highlighted a better growth outlook.

- Having topped out at $0.6784, the pair is sandwiched between its 100-HMA

($0.6774) and 200-HMA ($0.6779) at writing, where it has consolidated over the

last hour or so. A clean breach of the 200-HMA would open up the $0.6800

barrier, followed by the Aug 8 high of $0.6822. Conversely, a pullback below the

100-HMA would return focus to the Aug 14 low of $0.6736.

- Skilled vacancies data hits tomorrow, with flash CBA PMIs due on Thursday.