AUD/USD has largely given away the modicum...>

AUSSIE: AUD/USD has largely given away the modicum of strength it showed in

early indicative trade after Chinese government's communique & official

guidelines suggested that Beijing will try and tackle the issue of IP

violations, a key sticking point in trade talks with the U.S.

- Friday saw AUD/USD stick to a tight range. Activity briefly picked up into the

EU morning, likely due to gyrations in risk appetite as mixed EZ PMI data hit. 

- AUD/USD now trades +5 pips at $0.6790. Bulls look for a breach of $0.6803/09,

Friday's high/50-DMA. It would open up the 100-DMA/Nov 19 peak at $0.6830/35.

Bears need a dip under $0.6770, the 61.8% retracement of the Oct bull mkt & Nov

14 low, before targeting the 76.4% retracement of that rally at $0.6732.

- Speaking w/ABC, Aussie Treasurer Frydenberg defended the recent rate cuts from

the RBA & refused to agree that last week's announcement of new infrastructure

spending means that the gov't admits that the economy is running out of steam.

- Focus in Australia turns to construction work done, capex and private sector

credit data, due on Wednesday, Thursday and Friday respectively. RBA Gov Lowe

and Dep Gov Debelle both speak on Tuesday.