YEN IS WEAKEST CURRENCY of the day, while AUD IS STRONGEST after more hawkish rhetoric from RBA Chief Stevens making the case for an April tightening when he warned the nation over the prolonged overheating in housing. RBA is now expected to hike by 25-bps to 4.25%. AUDUSD eyeing the interim resistance at 85.00 while AUDUSD soars nearly a cent since Asia Monday but must close above 0.9200 to convince the market of a successful breach of its 2-week down trend. CADJPY eyeing 90.80, but as was seen last week, a close above 91 will be needed to sustain this recovery. Medium term resistance stands at 92.2061.8% retracement of the 107.04-68.51 move. LOW US INFLATION and STEADY SPENDING will support the case for both the doves and hawks at the Fed as US Feb core PCE price index (Fed's preferred inflation indicator) slowed to 1.3% y/y from 1.8%, while pers. spending slowed as expected to 0.3% from 0.5%. GOLD capped at 1119.