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China Repo Rates Fall on Tuesday


RBC: Receive 1Y1Y Vs. U.S.

AUSSIE: AUD/USD trades -5 pips  at $0.6500 as we type. The focus over the last
hour or so has been on a speech from RBA Dep Gov Debelle. The opening remarks
provided little of note, but in Q&A Debelle gave the first clear indication of a
preference for YCC over outright QE from the RBA, as he pointed to a preference
for price over quantity, should the need for bond buying arise.
- Fiscal measures vs. coronavirus outbreak from Australia's gov't continue to
draw attention. PM Morrison will unveil a A$2.4mn health package later today,
which will include funding 100 dedicated pop-up clinics. A further multi-billion
stimulus package is expected to be announced on Thursday.
- To recap, AUD/USD gave away 82 pips yesterday as USD firmed up in reaction to
comments re: supportive measures from U.S. Pres Trump & Tsy Sec Mnuchin, while
AUD was pressured by an underwhelming NAB Business Confidence Survey.
- Bears look at Tuesday's trough at $0.6463 as their initial target. Conversely,
bulls would be pleased by a rally above $0.6588, which represents the 38.2%
retracement of the Dec 31 - Mar 9 sell-off.
- On the Aussie docket today: Westpac Cons. Confidence & housing finance data.