AUD was the outperformer overnight, as the...>

AUSSIE: AUD was the outperformer overnight, as the stronger than exp. AU GDP

data pushed AUD/USD to a high of $0.7218. The pair failed to mount a serious

test of option expiry linked resistance at $0.7225 & Tuesday's session high

($0.7235), with the breakdown of the GDP print revealing that growth was driven

mainly by households, although sustainability is in doubt given the dip into

savings to support expenditure amid slowing income growth. AUD/USD last trades

at ~$0.7185.

- Bulls need a break back above $0.7305/10 to alter the short-term outlook. The

pair's downtrend remains intact with immediate focus on the May 24 2016 low

($0.7145). A move below here would likely accelerate the move toward the 1.618%

swing target ($0.7092), ahead of the key $0.7000 psychological level. Bulls need

a break back above $0.7305/10 to alter the short-term outlook.

- Notable FX options expiries at today's 10 AM NY cut: $0.7150 (A$748mn),

$0.7225 (A$1.57bn).