AUD/USD last trades flat at $0.6876. The.....>

AUSSIE: AUD/USD last trades flat at $0.6876. The rate opened a touch higher, but

has already shed its early gains. Australian gov't published its MYEFO, which

may have applied some pressure as it saw narrower budget surplus forecasts

through 2023 & a cut to the 2019-20 GDP projection. Flash Australian PMI

readings from CBA were also underwhelming. All three figures slipped further

into contraction & m'fing gauge printed at the lowest level on record.

- Friday saw the pair shake off its initial strength, linked to a risk-positive

reception of UK election results, as participants were somewhat disappointed by

the details & non-committal nature of of U.S.-China phase-one trade pact.

- A break under Friday's low of $0.6864 would encourage bears to target the

50-DMA, which comes in at $0.6828. Bulls look for a pick-up in topside momentum,

which would be signalled by a firm rally through the $0.6909 200-DMA towards

Friday's peak, located at $0.6939.

- The main point of note in Australia this week is the domestic labour mkt

report, due Thursday. On the radar today are Chinese econ activity indicators.

RBA's Kearns speaks today, while RBA Dec MonPol meeting minutes hit on Tuesday.