A soft AU retail sales print (0.0% M/M vs....>

AUSSIE: A soft AU retail sales print (0.0% M/M vs. Median 0.3%) initially

outweighed the stronger than exp. Q2 corporate profit & inventory data, allowing

AUD/USD to register a fresh YtD low ($0.7166).

- This was before the pair bounced to challenge $0.7200 last, with sources

pointing to a mixture of corporate and institutional demand.

- From a technical perspective the 2% envelope 10-DMA, which coincides with the

overnight low, provides initial support ($0.7166), with a break opening up the

nearby December 23 2016 low ($0.7160), followed by the May 24 2016 low

($0.7145). Initial resistance is noted at Friday's high ($0.7268).

- It's a data heavy week in Australia, with GDP input data due ahead of

Wednesday's final national accounts release. There will of course be interest in

tomorrow's RBA MonPol decision, especially given Westpac's move to hike its

standard mortgage rate last week. Elsewhere RBA Gov. Lowe will speak late on

Tuesday.