AUD/USD softened to session lows of..........>

AUSSIE: AUD/USD softened to session lows of $0.7410 in early dealing on the back

of headlines suggesting that the U.S. is considering levying a 25% tariff on

Chinese goods, up from the prior 10%, although the sources attributed did

concede that the touted higher tariffs may not come to pass, with the cross

recovering to $0.7420 last.

- AUD/USD's 50-DMA ($0.7462) and the upper end of the major descending channel

(now $0.7485) provide formidable resistance which need to be overcome to

generate a bullish signal. Initial support is located at the July 30 low

($0.7386).

- China's Caixin Manufacturing PMI provides the major risk event for the AUD

today, while the cross will of course be subjected to the goings on at the FOMC

MonPol decision. AU trade data & retail sales due later in the week provide the

domestic headlines ahead of next week's RBA MonPol decision.