It has been a limited session thus far for...>

AUSSIE: It has been a limited session thus far for AUD/USD, sticking to a

narrow, sub-20 pip range, last virtually unchanged at $0.7360.

- The rate has been unable to capitalise on broader, albeit relatively modest

USD weakness, related to moves in Tsy yields, and has perhaps been limited by

flows in the AUD/NZD pair.

- Bulls ultimately need a break of $0.7400 to build on recent momentum, an area

which also combines the congestion zone seen in Jun-Aug and the 200-DMA which

currently comes in at $0.7416. Initial support noted at $0.7316, the technical

gap from Nov 30.

- Focus remains on the RBA MonPol decision due at the bottom of the hour. Not

much expected in terms of fireworks as the Bank confronts a backdrop of a

tightening labour market, limited inflation & wage growth, moderating house

prices in some of the major AU cities and the global trade war backdrop. All of

those surveyed expect the Bank to leave the cash rate unchanged at 1.50% at its

final decision of 2018. Markets currently pricing a ~70% chance of the Bank

remaining on hold through Sep 2019 according to BBG WIRP function.