Increased pessimism surrounding a............>

AUSSIE: Increased pessimism surrounding a Sino-U.S. trade deal provided the

initial catalyst for a move lower in AUD/USD Thurs, before a recovery in U.S.

stocks later in the day eased pressure. AUD/USD last $0.7230, a touch softer in

early Friday trade, but off of lows following optimistic trade comments from

U.S. President Trump.

- RBA's Debelle garnered some Thursday, stating that "the RBA has repeatedly

said that our exp. is that the next move in MonPol is more likely up than down,

though it is some way off. But should that turn out not to be the case, there is

still scope for further reductions in the policy rate. We have also been able to

examine the experience of others with other tools of MonPol & have learned from

that. Hopefully, we won't ever have to put that learning into practice. QE is a

policy option in Australia, should it be required." Debelle seemed relaxed when

questioned on recent GDP data, perhaps suggesting that his initial comments

allude to scenario analysis, as opposed to any central RBA discussions.

- Up trendline support from the Oct lows has given way, with bears targeting the

$0.7200 level ahead of the 50-DMA at $0.7185. Bulls need to clear $0.7400.