AUD/USD was pressured by the slightly........>

AUSSIE: AUD/USD was pressured by the slightly softer than expected headline AU

CPI release overnight, last dealing just shy of $0.7400, after a brief look

below the 50% retracement of the move from $0.7360 to $0.7434 ($0.7397), with

the next level of support noted at yesterday's low ($0.7360).

- With lower tier AU data due over the next week or so focus turns to the RBA's

next MonPol decision, on 07 August, with all of those surveyed thus far looking

for the RBA to leave its cash rate unchanged at 1.50%.

- Today's inflation print is unlikely to alter the RBA's steady hand approach.

As a reminder the RBA's view is that "inflation is low & is likely to remain so

for some time," however, its central forecast is "for CPI inflation to be a bit

above 2.0% in 2018." The IB strip prices a circa 20% chance of a 20bp hike by

the end of May 2019.

- FX option expiries of note at today's 10 AM NY cut: $0.7300(A$705mn),

$0.7400(A$680mn)