AUD/USD Continues To Edge Lower, Frydenberg & Lowe Take Floor

AUD/USD went offered Tuesday, as optimism surrounding research into Covid-19 vaccines dissipated, giving way to renewed concerns over the spread of infections and resultant lockdown measures. The rate ticked higher into the London morning, but sold off after rejecting $0.7340 (Nov 9 high), adding to its importance as a near-term resistance.

• In an op-ed for the AFR, Australian Treasurer Frydenberg asked domestic financial regulators to refrain from limiting consumers' and businesses' access to credit in order to help sustain economic recovery. Frydenberg argued that regulators "must pursue their mandates in a manned that is consistent with the will of the parliament".
• Frydenberg reiterated his concerns during a speech at an AFR-hosted event this morning, suggesting that financial regulators should focus on enforcing the law rather than "send psychologists into boardrooms", while insisting that the gov't indends to cut red tape to help consumers.
• At yesterday's briefing, Chinese Foreign Min spokesman Zhao accused Australia of adhering to a "Cold War mentality" and committing a series of mistakes re: HK, Taiwan & Xinjiang and others, which has damaged bilateral relations. Per BBG, Treasurer Frydenberg was to deliver a speech today in an attempt to extend an olive branch to Beijing.
• AUD/USD last trades -10 pips at $0.7290. A fall through the 20-EMA at $0.7222 would open up Nov 5 low of $0.7145. Meanwhile, bulls need a movethrough Nov 9/17 highs at $0.7340 before targeting Sep 16 high of $0.7345.
• Coming up in Australia today, we have wage price index and comments from RBA Gov Lowe. Then, focus turns to Thursday's labour market report & Friday's flash retail sales.