The Aussie tanked as AU Q4 GDP missed exp.,...>

FOREX: The Aussie tanked as AU Q4 GDP missed exp., both on a Y/Y and Q/Q basis,

while J.P. Morgan changed its RBA call and is now looking to two 25bp rate cuts

in July and August this year, following a similar revision by Nomura on Monday.

Macquarie also look for 50bp worth of easing from the RBA, but their call had

less impact on the market. Elsewhere, early Asia-Pac hours saw AUD shrug off

remarks by RBA Gov Lowe, who said that "it's hard to think of a scenario where

interest rates would need to go up" in 2019. AUD weakness spilled over into NZD.

- The broader risk-off theme remained in play, keeping JPY buoyant. The Nikkei

225 started on the back foot, and ebbed lower through the session.

- GBP underperformed pre-AU GDP and remained relatively weak, pressured by a

RTRS source report suggesting that yesterday's UK-EU negotiations "didn't go

well," which confirmed earlier worries. The talks involving UK's Cox, UK's

Barclay & EU's Barnier resume today.

- Focus today turns to U.S. trade balance and ADP employment change, as well as

the BoC MonPol decision. Elsewhere, BoE's Cunliffe & Saunders, as well as Fed's

Williams & Mester will speak.