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Fresh 2021 Lows

AUSSIE: AUD/USD has been pressured by the latest ratcheting up in trade war
tensions over the weekend, with hawkish trade comments from U.S. VP Pence re:
China, while the APEC summit failed to result in a common communique, with trade
war matters dividing the room. Also worth noting that China's Commerce Ministry
announced that it is launching an anti-dumping investigation on imported barley
from Australia. Some suggested that this will be interpreted as retaliation for
the AU-U.S. security deal that was signed over the weekend.
- This is after AUD/USD bulls benefited from the weaker USD Friday, as well as
warmer tones from U.S. President Trump re: China, although they were later
played down by the White House, and somewhat reversed by Pence over the weekend.
- Friday saw a close above the key $0.7300 level. AUD/USD last $0.7309, intraday
lows of $0.7302. Support expected ahead of the figure, followed by the 100-DMA
at $0.7257. Initial resistance likely to be located on an approach into the 50%
retracement of the move from $0.7677 to $0.7021 at $0.7349.
- AU focus this week falls on the RBA's November meeting minutes, due Tuesday,
which will be followed up by a speech from RBA Gov. Lowe later the same day.
MNI London Bureau | +44 0203-865-3809 |