AUD Consolidates Losses

AUD/USD fell in Tuesday's Asia-Pac hours, as J&J paused their Covid-19 vaccine study & reports re: tensions in Sino-Aussie relations got some broader airing. Renewed losses came later in the day as U.S. fiscal talks remained stalled and hopes for a stimulus package ahead of the presidential election faded.

• The SCMP reported that "at least four major Chinese steel mills have started diverting orders of Australian coking coal to other countries as a ban on shipments takes effect", while "Chinese customs have also stopped 'discharging and clearance' of all Australian coal imports" as Canberra seeks clarity on the recent reports surrounding the matter.
• Elsewhere, a source report published by the Global Times noted that the driving force behind restrictions on Australian coal imports are a supply glut in China and Beijing's environmental protection push.
• AUD/USD trades flat at $0.7160 and a break under Oct 7 low of $0.7096 would open up Sep 29 low of $0.7070. Conversely, gains past trendline resistance at $0.7229 would turn focus to Oct 10 high of $0.7243.
• Westpac Consumer Confidence headlines in Australia today. After that, focus moves to a speech from RBA Gov Lowe, consumer inflation expectation and labour market report, all due Thursday.