AUD has come under some modest pressure on...>

AUSSIE: AUD has come under some modest pressure on the back of weekend headlines

from the WSJ noting that China has cancelled the planned trade talks with the

U.S. amid escalation of tariff threats, with the latest round of U.S. tariffs on

Chinese goods going into play earlier on today. AUD/USD last ~$0.7270, back from

the early lows that were printed in very illiquid trade/indications.

- Rate has drawn some modest support from recent headlines from a Chinese white

paper which noted that "co-operation is the only correct choice for China & the

U.S." & as such "China is to push forward efforts to solve trade frictions with

the U.S." These headlines were ran by Xinhua & upon closer examination the body

of the paper seems a little less conciliatory then the headlines.

- AUD/USD challenged but failed to break the 50-DMA ($0.7305) on Friday, with

any close above this level set to alter the short term technical outlook.

Conversely, failure to hold above $0.7250 and a subsequent reversal through

$0.7200 would bring the YTD low ($0.7085) back into focus.

- The AU docket is limited this week, so focus will likely fall on the broader

risk backdrop.