AUD Undermined By Risk Rout

AUD/USD lost its initial shine as the greenback picked up a bid after Asia hours on Monday. Lingering concerns about resurging coronavirus, a report about money laundering involving major global lenders and political tensions in the U.S. over naming the successor of the late Supreme Court Justice Ginsburg rattled risk appetite, boosting appetite for safe havens at the cost of high-beta FX. Broader risk aversion outweighed earlier enthusiasm about the recovery of Australia's labour market, improving coronavirus situation in Victoria and expectations of fiscal support measures from the federal government in Canberra.

• The rate has held steady this morning and last trades at $0.7223. The 50-DMA/Sep 9 low, located at $0.7201/0.7192, limited losses on Monday and provide the initial support. A break here is needed to confirm a short-term bearish cycle and open up Aug 20 low of $0.7136. Bulls look to take out Sep 16 high of $0.7345 before targeting the 76.4% retracement of the Sep 1 - 9 sell-off at $0.7362.
• A speech from RBA Dep Gov Debelle headlines today, with weekly payroll jobs and wages data also due. Flash CBA PMIs and preliminary retail sales come out tomorrow, with flash trade balance coming up on Friday.