AUD/USD has already wiped out modest gains...>

AUSSIE: AUD/USD has already wiped out modest gains registered Friday on the back

of softer than expected U.S. flash PMIs, as escalating concerns over the

coronavirus outbreak bite. Soaring case counts in Italy and South Korea,

communique from the G20 finance summit highlighting risks from the virus &

reports suggesting that the incubation period of the pathogen may be longer than

previously estimated have prompted participants to seek safety.

- The rate changes hands at $0.6610, 17 pips shy of neutral levels. It printed a

new multi-year low of $0.6585 earlier today but has moved off lows since. The

lower 3.0% Bollinger band that kicks in at $0.6571 provides the initial bearish

target, after it limited losses on Friday. A break here would shift the downside

focus to trendline support at $0.6527. Bulls initially set their sights on

$0.6639, where the rate topped out on Friday.

- Among the upcoming data releases in Australia, Wednesday's construction work

done, Thursday's capex & Friday's private sector credit data will be of note.