AUD/USD shed 26 pips in the Asia-Pacific.....>

AUSSIE: AUD/USD shed 26 pips in the Asia-Pacific session and last deals at

$0.6976, as broader risk-off flows weighed on the Aussie. Risk appetite was

limited by escalating Sino-U.S. trade tensions, after the weekend brought

reports of a serious deadlock in bilateral trade talks, while U.S. President

Trump kept hawkish rhetoric flowing from his Twitter account today. Weaker than

expected Australian housing finance data did not help recovery attempts.

- The downside breach of the May 6 multi-month low of $0.6963 would open up the

lower 1.0% 10-DMA envelope, located at $0.6934. Topside focus remains on the

downtrend resistance at $0.7010, followed by Friday's peak at $0.7019.

- At a campaign launch on Sunday PM Morrison promised to cut deposit

requirements for first-home purchasers to 5% from 20% and the opposition Labour

pledged to match the plan. This occurs ahead of Saturday's federal elections and

amidst the RBA's continuous concern with falling house prices.

- RBA Dep Gov Debelle will speak later today. NAB biz. confidence figures are

due Tues, Westpac cons. conf. survey will follow on Weds, while Thurs will see

the release of Aussie labour mkt report & comments from RBA's Bullock.