###POV: AUDUSD TARGETS 0.7800 -AUDUSD has....>

AUSSIE: ###POV: AUDUSD TARGETS 0.7800

-AUDUSD has witnessed the largest weekly decline in more than a year off the

recent highs of $0.8136. But further losses could still be seen.

-Narrowing yield differentials continue to pressure, with the AU-US 10y spread

briefly traded close to parity. This is the narrowest since the late

1990's/early 2000's.

-AUDUSD 1-mth risk reversals have dropped to their lowest levels since

September.

-Recent soft Australian domestic data amid global equity concerns have seen

momentum indicators point toward further downside pressure for AUD.

-Break of 0.7800 triggers further AUDUSD bearish technical signals.

-LOOKING AHEAD: With wage growth and inflation at persistent low levels,

investors will look for clues in Governor Lowe's speech on Thursday (0900GMT),

followed by Fridays quarterly SoMP (0030GMT) for guidance.