The AUD was the underperformer overnight,....>

AUSSIE: The AUD was the underperformer overnight, falling afoul of the dent in

risk sentiment & gyrations in the yuan. AUD/USD last trades a few pips softer at

$0.7355, off of the low of $0.7318.

- The risk off flows saw bears target the YtD low (0.7311), although no notable

test of the level materialised, with buyers stepping back in on the back of a

pullback in the yuan crosses/rumours of Chinese state intervention in the

currency.

- The YtD low continues to present the initial level of interest to the

downside, while bulls continue to look for a close above hourly support from

July 18 ($0.7391), to open up a move to hourly support from July 10 ($0.7459) to

gain breathing room.

- Participants focus on next week's AU CPI release.