AUD/USD Edges Higher In Early Trade After Losing Ground Thursday

AUD/USD ebbed lower Thursday as the greenback benefitting from month-end flows & ECB MonPol decision, which saw Pres Lagarde note that European economies are losing momentum and there is "little doubt" that policymakers will "recalibrate our instruments at our next Governing Council meeting". The pair peeked below the trough of Sep 25 at $0.7006, a key support level, but failed to close south of that level.

• The Queensland government is set to announce its decision on whether to re-open the state's border. Premier Palaszczuk has been facing increasing pressure to do so, with a regional election coming up on Saturday.
• Treasurer Frydenberg took part in a call with the finance ministers of the "Five Eyes" members (NZ was absent). Officials exchanged views on fiscal policy responses and virus containment strategies.
• There has been some focus on an AFR article, noting that next week the RBA could trim its cash rate target to 0.10%, alongside the 3-Year ACGB yield target and interest rate applied to the TFF, the interest paid on E/S surplus funds lodged at the RBA will fall to 0.01% & the Bank could buy "billions of dollars" of ACGBs from the 5-10 Year sector.
• AUD/USD last trades +8 pips at $0.7037 and bulls look for recovery above trendline drawn off Sep 1 high/Oct 23 high at $0.7151/58. Conversely, a resumption of losses below Thursday's low of $0.7002 would open up the 23.6% retracement of the Mar - Sep rally at $0.6965.
• Australia reports private sector credit and PPI data later today.
• Next week, focus turns to AiG & CBA (f) M'fing PMIs, ANZ job ads & building approvals (Monday), RBA MonPol decision (Tuesday), monthly/quarterly retail sales & weekly payroll data (Wednesday), trade balance (Thursday) & RBA SoMP (Friday).