Rising tensions between China and several....>

AUSSIE: Rising tensions between China and several other nations inspired AUD

sales on Wednesday. Risk sentiment was battered by the news that U.S. Sec of

State Pompeo notified the Congress that Hong Kong is no longer autonomous from

mainland China, while U.S. lawmakers passed a bill sanctioning Beijing for its

treatment of Uighurs. Resultant risk aversion & yuan weakness weighed on AUD.

- Elsewhere, eyes were on an FT piece noting that "China is exp. to promote the

use of domestic coal by tightening import rules, starting with shipments from

Australia." The idea was floated by the press last week but the FT article gave

it a wider airing yesterday, with many linking it to souring Sino-Australian

tensions, following China's latest decision to raise duties on barley from Oz.

- The rate trimmed losses after the WMR fix, but selling pressure has picked up

this morning, AUD/USD has shed 8 pips and last sits at $0.6614. Bears look for a

fall through May 22 low of $0.6506, towards the 100-DMA at $0.6484. Bulls look

to take out the 200-DMA at $0.6658 before targeting Wednesday's peak at $0.6680.

- Private capex for Q1 & comments from RBA Gov Lowe headline today's economic

docket in Australia.