AUD/USD has stuck to a tight range in........>

AUSSIE: AUD/USD has stuck to a tight range in early dealing this week. As a

reminder AUD started Friday strong & finished it stronger, with markets hoping

the appointment of Treasurer Morrison as AU PM will bring an end to the

political uncertainty. The currency was also aided by strength in the yuan as

the PBOC reinstated the use of the counter-cyclical factor in the CNY fixing.

- The weekend saw Morrison put his own mark on the cabinet, as a reshuffle saw

Cormann retain the role of Finance Minister, while Julie Bishop resigned from

her role as Foreign Minister. It is also worth noting that the Labour Party has

extended its lead over the ruling coalition in the latest opinion poll.

- AUD/USD last deals at $0.7335. While Friday's rally appears impressive in

isolation, it stopped short of recovering above the Thursday high and, as a

result, the 50-DMA ($0.7375) remains untroubled. A close above here will be

required to change the current negative picture. Trendline resistance from the

Jan high ($0.7410) may also slow progress on any approach, followed by channel

top resistance ($0.7453). Bears continue to focus on the YTD low ($0.7203).

- Thursday's Q2 CapEx data provides the focal point on the AU docket this week.