AUSSIE-YEN: AUD/JPY sits 46 pips lower, last at......>

AUSSIE-YEN: AUD/JPY sits 46 pips lower, last at Y74.04. Iran's rocket attack on

an Iraqi military base hosting U.S. troops has taken its toll on the

risk-sensitive pair, as participants have flocked to safe haven assets.

- Bears look for a clean move through the 100-DMA at Y73.91, which seems to be

limiting the sell-off. A break below the nearby Dec 10 trough at Y73.83 would

further support their case, encouraging them to target the Nov 14 low of Y73.34.

Bulls keep an eye on Y74.83, the high of Dec 3.

- Today's move has allowed AUD/JPY to extend this year's drop, which has

occurred in the lockstep with the increase in RBA easing bets, evident in market

pricing. Participants worry about the economic fallout of Australia's bushfires,

whose impact has already filtered through into the economic data.

- Both of the weak ANZ job ads & weekly consumer confidence prints released out

of Australia on Tuesday were attributed to the impact of bushfires. We have some

more Aussie data coming up today, namely building approvals & job vacancies.