Aud/Usd: Asia open $0.7948, range....>

AUSSIE SUMMARY: Aud/Usd: Asia open $0.7948, range $0.7935-73. Europe open

$0.7961, range $0.7947-71. 

* Risk off early theme in Asia on weekend reports N.Korea had successfully

conducted a hydrogen bomb test.

* Aud was marked lower from Friday's close in NY of $0.7975 to $0.7932

* Domestic corporate demand surfaced, together with short covering pushed Aud up

to $0.7973 (filling NY-Asia gap).

* Muted reaction to Q2 Business inventories, -0.4% vs expected +0.3% (Negative

impact to Wednesday's Q2 GDP?).

* Toward the European open Aud consolidated within $0.7956-69.

* Rate edged to $0.7971 early Europe then dropped to $0.7947 on reports N.Korea

preparing missile launch(Sep9?)

* Rate settled back around $.7960 in late European morning trade. 

* Resistance $0.7996 (Aug30-4 highs), supply then cited at and above $0.8000,

while Asia's base of $0.7932 is support.