AUD/USD trades flat at $0.6869. On the.......>

AUSSIE: AUD/USD trades flat at $0.6869. On the radar today are Australian trade

balance and Chinese inflation data.

- The Aussie continued this year's so far uninterrupted rout Weds, even as the

de-escalation of U.S.-Iranian tensions brought some relief to risk appetite,

limiting intraday losses to just a handful of pips. AUD continues to be weighed

on by domestic bushfire crisis & its expected economic fallout. Markets

currently price in a ~55% chance of a 25bp cut from the RBA in Feb.

- Meanwhile, geopolitics took the centre stage on Weds as participants digested

reports re: U.S.-Iran situation. U.S. Pres Trump's preference for economic

sanctions over military action, suggested in his televised address, prompted

AUD/USD to bounce from intraday lows in U.S. hours.

- A fall through the Dec 17 low of $0.6838 would see the downside momentum

intact, turning the focus to the trendline support/61.8% retracement of the Oct

2 - Dec 31 rally at $0.6811/09. A bounce above the 200-DMA at $0.6894 would give

bulls some reprieve, brining the Jan 7 high of $0.6943 into play.

- Australian retail sales data is due tomorrow.