The RBA MonPol decision provided AUD bulls....>

FOREX: The RBA MonPol decision provided AUD bulls with relief, allowing the

Aussie to retrace its earlier declines that came about on the back of a soft AU

soft retail sales print & weak trade balance breakdown. The RBA failed to allude

to a more neutral view on MonPol as it left its cash rate unchanged, which

propelled AUD to the top of the G10 FX leaderboard. This occurred even as the

Bank trimmed its GDP forecast to 3.0% for 2019 (prev. 3.25%), with the potential

for a lower 2020 GDP growth forecast in the SoMP due Friday. NZD followed in

AUD's footsteps, but lagged behind its Antipodean cousin on both swings. 

- USD/CNH fell ~240 pips, back below its 200-DMA, with Chinese markets closed

for Lunar New Year holidays. 

- The yen struggled, despite the Nikkei 225 easing off of best levels. 

- Little reaction to comments from Fed's Mester, who noted downside risks, but

said that if the econ performs as she exp., the fed funds rate may need to move

"a bit" higher. Meanwhile, Fed's Powell & Clarida met with Trump & Mnuchin. 

- Focus today turns to UK & EZ services PMIs, U.S. ISM non-mfing PMI, as well as

remarks from Riksbank's Ingves & Jochnick.