Modest risk-off flows noted at the Tokyo.....>

AUSSIE: Modest risk-off flows noted at the Tokyo equity open applied some early

pressure on AUD/USD. Subsequent recovery was capped at $0.6937 as the rate

dropped on the back of weaker than expected Chinese activity data, touching a

fresh multi-month low of $0.6922 shortly thereafter. AUD/USD then proceeded to

trade just above its worst levels and last sits at $0.6928, 16 pips worse off.

- Australian Q1 wage data and May Westpac consumer confidence survey were

largely ignored.

- A move through the lower 1.0% 10-DMA envelope, which kicks in at $0.6912,

would open up the lower Bollinger band (2%) at $0.6898. Meanwhile, bulls keep an

eye on $0.6970, which represents the 100-HMA.

- All eyes are on Australian labour market report, due to be published tomorrow.

RBA Assistant Gov Bullock will speak on the same day. Focus will also remain on

Sino-U.S. trade matters.