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Equities Extend Recovery, Nears Friday High


April Trade Deficit Widens

AUSSIE: The release of RBA Statement on Monetary Policy sent AUD lower after the
Bank cut its GDP growth exp. across its forecast horizon (aggressively over the
immediate term) in its SoMP, as it trimmed the majority of its CPI exp. but left
the end of 2020 estimate unchanged. Elsewhere the Bank expects that unemployment
will tick lower through the back end of 2020. The Bank also affirmed Gov. Lowe's
statement that the risk to the outlook for interest rates is now more balanced. 
- AUD/USD last seen at $0.7070, ~30 pips lower on the day, as it fell through
Thursday's low of $0.7089, as well as the Jan 25 low & the lower Bollinger band
(2%) at $0.7076, shifting bearish focus to the lower 2.0% 10-DMA envelope at
$0.7039, followed by the lower Bollinger band (3%) at $0.7025. 
- AUD/NZD last NZ$1.0490, 33 pips lower on the day, below NZ$1.0485, where the
pair bottomed yesterday. Bears target the Feb 1 low of NZ$1.0471, ahead of the
Feb 5 low of NZ$1.0457. 
- AUD/JPY slipped ~40 pips and last deals at Y77.59. Bears need a break below
the Jan 25 low of Y77.51 before challenging Y77.12, which represents the lower
2.0% 10-DMA envelope.