Despite breaking above the prior day's.......>

AUSSIE: Despite breaking above the prior day's high in Tuesday's Asia-Pac

session, AUD/USD was offered into Europe and remained limited. The initial

uptick was driven by a broader risk-on feel, aided by assurances from both the

U.S. and China that there had been progress in bilateral trade talks. Those

modest gains were erased as USD appreciated. The pair recovered somewhat through

the WMR fix, but dropped late doors on the back of another round of USD buying

linked to the vote on the Brexit legislation in UK parliament.

- The rate sits at $0.6855, virtually unchanged on the day and just under the

adjacent 100-DMA. A fall under the 23.6% retracement of this month's bull mkt at

$0.6833 would prompt bears to target the 38.2% retracement of that range/round

figure at $0.6802/00. Bulls need to retake the 100-DMA, after showing above

earlier in the week. This would expose the key Sep 12 peak at $0.6895.

- Australian Tsy said that there are reasons to be optimistic on the economy

amid positive signals sent by the recent data releases.

- RBA Asst Gov Kent speaks at typing, skilled vacancies data is due later in the

day. Flash PMI readings from CBA come out on Wednesday.