AUD/USD was pressured in early EU hours on...>

AUSSIE: AUD/USD was pressured in early EU hours on Wednesday, after Westpac

raised its standard variable home loan rate by 14bp to 5.38%, stating that the

rate reflects a sustained increase in funding costs. The potential policy

feedback here, especially if some of the other large financial institutions

follow Westpac's lead, is that households will feel the pinch from higher

mortgage payments, crimping household spending/consumer optimism, leaving the

RBA on hold for longer.

- The cross slipped further at the NY crossover, hitting a low of $0.7275 in NY

hours, before GBP/USD's run higher pressured the USD, allowing the rate to

recover to ~$0.7310 last.

- From a technical perspective a close below $0.7300 would put focus back on the

YTD low ($0.7203), which needs to hold to prevent a potential downside

acceleration. A close above the 50-DMA ($0.7373) is needed to give the pair a

more positive feel.

- AU CapEx provides the highlight of the domestic docket today, with AU building

approvals also due.