AUD/USD lost altitude overnight as...........>

AUSSIE: AUD/USD lost altitude overnight as yesterday's optimism dissipated to an

extent, while comments from RBA Dep Gov Debelle applied some additional weight.

- Speaking from Canberra, Debelle noted that further AUD depreciation would help

the Australian economy and suggested that the floor for rates in Australia is

likely 0.0-0.5%. He added that if rates fell to "around 0.5%" the central bank

would have to consider "other options."

- AUD/USD last seen 15 pips lower at $0.6760. Bears need the Aug 20 low of

$0.6755 to give way before attempting a move at $0.6736, the low of Aug 14.

Bulls keep an eye on the trendline resistance at $0.6786 and a break here would

give them the green light for targeting the $0.6800 barrier.

- China arrested an Australian writer on suspicion of espionage, which bears the

risk of opening a diplomatic spat between the two countries.

- Q2 construction work done gets the quarterly GDP inputs underway, with capex

coming up on Thursday. Building approvals & private sector credit data for July

are due on Friday.