AUD/USD touched 20-month lows of $0.7166.....>

AUSSIE: AUD/USD touched 20-month lows of $0.7166 during Asian hours on Monday,

on the back of soft AU Retail Sales data, although the subsequent recovery to

$0.7224 in European trade was aided by a mixture of corporate and institutional

money, according to sources. The rate last deals at $0.7210. Bulls need a break

back above $0.7305/10 to alter the short-term outlook. A close below channel

base support ($0.7185) would open up the key $0.7150 area.

- The RBA MonPol decision & a speech from Gov. Lowe provide the headline risk

events today, with GDP input data also due. The RBA will almost certainly leave

its cash rate on hold at 1.50%. The Bank is unlikely to be swayed by domestic

political uncertainty and the risk of wider mortgage rate rises, instead

focusing on econ. data, including a dip in the unemp. rate, in effect

maintaining its glass half full approach. Chances are that the Bank will

reiterate that the next move in the cash rate will likely be up in both the

minutes from the meeting & Lowe's speech. Last month's SoMP gave the RBA the

chance to update its econ. forecasts, with no large deviations from the prior

outlook apparent.