AUD rallied in early indicative trade and....>

AUSSIE: AUD rallied in early indicative trade and opened on the front foot in

the wake of an unexpected victory for Australia's centre-right gov't in

Saturday's federal election. The votes are still being counted and at the moment

it seems questionable whether the ruling coalition will secure a working

majority in either house of parliament.

- AUD/USD last trades at $0.6898, 30 pips higher on the day. A dip through the

lower 1.0% 10-DMA envelope, which kicks in at $0.6886, would open up Friday's

multi-month low of $0.6865. Conversely, a return above $0.6900 would allow bulls

to target the $0.6938 high registered in early indicative trade.

- This comes after Friday saw AUD/USD extend its recent losing streak, touch a

fresh multi-month low and finish 24 pips worse off, as it concluded its worst

week since mid-Feb. The pair was weighed on by reports circulated by Chinese

state media, suggesting that China might have lost interest in continuing trade

negotiations with the U.S. as for now.

- Points of note this week include the RBA May MonPol meeting minutes & a speech

from RBA Gov Lowe, both due on Tuesday. CBA PMI gauges come out on Thursday.