AUD/USD trades 5 pips lower and last sits....>

AUSSIE: AUD/USD trades 5 pips lower and last sits at $0.7089, off the early low

at $0.7077, but still extending on yesterday's 48 pip fall. Despite showing some

early strength noted on the back of strong labour mkt data in early Asia hours

yesterday, AUD tanked after NAB hiked its variable mortgage rates by 12-16bp.

Market reaction was driven by the RBA's perceived reaction function owing to the

wealth effect. U.S. Commerce Sec Ross' pessimistic comments re: Sino-U.S. trade

talks might have also added some pressure later in the day. 

- Bears look for a clean break below yesterday's low of $0.7081 before

attempting a move at $0.7046, which represents the 38.2% fibo retracement of the

move from $0.6741 to $0.7235. Conversely, initial topside attention is attracted

by the lower 1.0% 10-DMA envelope at $0.7082, followed by the 21-DMA at $0.7126.

- Australian focus next week turns to domestic CPI due Wednesday, with Australia

set to observe a holiday Monday.