As a reminder AUD started Friday strong &....>

AUSSIE: As a reminder AUD started Friday strong & finished it stronger, with

markets hoping the appointment of Treasurer Morrison as AU PM will bring an end

to the political uncertainty. AUD was also aided by strength in the yuan as the

PBOC reinstated the use of the counter-cyclical factor in the CNY fixing &

broader USD weakness was witnessed post-Powell. The weekend saw an AU cabinet

reshuffle, with Cormann retaining the role of FinMin, while Julie Bishop

resigned from her role as ForMin. It is also worth noting that the Labour Party

has extended its lead over the ruling coalition in the latest opinion poll.

AUD/USD last deals at $0.7325, after punching a session low of $0.7317 as the

yuan moved back from best levels, with further pressure added via AUD/NZD sales.

- While Friday's rally appears impressive in isolation, it stopped short of

recovering above the Thursday high and, as a result, the 50-DMA ($0.7375)

remains untroubled. A close above here will be required to change the current

negative picture. Trendline resistance from the Jan high ($0.7410) may also slow

progress on any approach, followed by channel top resistance ($0.7453). Bears

continue to focus on the YTD low ($0.7203).