AUSSIE-YEN: AUD/JPY last sits at Y74.42, 12 pips.....>

AUSSIE-YEN: AUD/JPY last sits at Y74.42, 12 pips above neutral levels. The pair

has modestly extended gains after the release of a wider than exp. BoP current

c/a surplus out of Australia, accompanied by an in-line net exports reading.

- The rate pushed higher Monday having started on the front foot as the weekend

release of Chinese off'l PMI data brought positive surprises. Resultant risk-on

feel was sustained through the Asia-Pac session, even as several press reports

downplayed potential for an imminent progress in U.S.-China trade talks. This

kept filtering through into the pair, although Australia's own economic data was

less than inspiring. The move higher stalled in London/NY hours as worrying

signals from the trade war front gained some more traction.

- Bulls need to see the channel top at Y74.63 give way before they set their

sights on the Y75.00 mark. For the bears, the 50-DMA at Y73.85 provides the

initial point of interest. A break here would bring into view the 100-DMA, which

coincides with the low of Nov 21 at Y73.49.

- Today the focus is on the RBA MonPol decision. Please use the following link

to access our preview: https://emedia.marketnews.com/RBA_Preview_Dec_2019.pdf