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Tuesday's Asia-Pac session saw AUD/USD.......>

AUSSIE
AUSSIE: Tuesday's Asia-Pac session saw AUD/USD slide into the open & print an
early low of $0.6981 in the wake of hawkish trade comments from U.S. TR
Lighthizer & U.S. Tsy Sec Mnuchin. The rate gradually pared losses thereafter,
before shooting higher on the back of the latest RBA MonPol decision, with
$0.7048 capping the rally. Nonetheless, AUD strength waned through the London &
NY hours, as focus returned to the escalation in Sino-U.S. trade tensions. That
being said, AUD/USD failed to convincingly breach $0.7000 and still managed to
finish 21 pips above Monday's close.
- As a reminder, the RBA left its cash rate unch., amidst speculation that
subdued inflation and growth rates would inspire a cut.
- AUD/USD last trades flat at $0.7012. Above the 200-HMA at $0.7023 would expose
$0.7053/55, where the rate peaked on Apr 2/3. On the downside, focus remains on
the $0.7000 mark, ahead of Monday's multi-month low of $0.6963.
- The RBA's SoMP, due Friday, may provide more clarity re: yesterday's MonPol
decision. Elsewhere, investors will watch trade & inflation data from China, due
today and tomorrow respectively.

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