AUD was the worst performer in the G10.......>

AUSSIE: AUD was the worst performer in the G10 space on Wednesday as political

uncertainty continued to undermine confidence after PM Turnbull's near miss

confidence vote. With further leadership challenges exp., markets were happy to

sell the AUD & take profits on a four-session long AUD/USD winning streak that

stopped just short of the 50-DMA ($0.7384). The Aussie has been unreactive to

the latest round of domestic political news. Peter Dutton advised PM Turnbull

that "the majority of the party room no longer supported his leadership.

Accordingly, I asked him to convene a party room meeting at which I would

challenge for the leadership of the Parliamentary Liberal Party." Turnbull has

refused the request. The rate last deals at $0.7350, with bulls needing a close

above $0.7380 to open up the next leg higher, and switch focus to trendline

resistance from the January highs ($0.7410), followed by channel top resistance

($0.7453). Bears need to break Friday's low ($0.7253) to regain control.

- RBA's Boulton will speak today, although this will cover gov't banking. The AU

docket is thin over the next week, with focus on Q2 CapEx, due next Thursday.

This will leave AUD/USD subject to the broader USD trend & AU politics.