A 20 pip bounce from lows for AUD/USD,.......>

AUSSIE: A 20 pip bounce from lows for AUD/USD, last printing at $0.6710, as the

initial bout of risk-off flows abates, for now, although the typical risk

proxies remain well and truly underwater in early Asia-Pac trade owing to the

latest escalation in trade war matters.

- As mentioned, trade war matters are the dominant theme, although it is also

worth recapping RBA Governor Lowe's comments from the weekend. Lowe reiterated

that central banks have limited ability to cushion the global economy from the

headwinds it faces at present, noting that "political shocks are turning into

economic shocks," and highlighting a risk towards easy policy resulting in

inflated asset prices.

- Rate has so far failed to challenge the YtD low at $0.6677, which remains key

support. Bulls look to reclaim the Aug 9 high at $0.6822, which would allow them

to regain some composure and set their sights higher.

- Participants now look to the daily USD/CNY fixing from the PBoC.