AUD/USD started off on the defensive.........>

AUSSIE: AUD/USD started off on the defensive following a Saturday drone strike

on Saudi Aramco facilities, which removed ~5% of global oil production. The pair

trades flat at $0.6878 at present, as it regained some poise after U.S. Pres

Trump allowed for the release from the U.S. petroleum reserve, if needed.

- This occurs after AUD/USD closed 13 pips higher Friday, extending its winning

streak to 9 sessions (albeit it charted a lower high and lower low). Despite a

modest sell-off triggered by a better than exp. advance retail sales print out

of the U.S. & post-WMR fix move off highs, the overall tone was bullish.

- On the technical front, the 50% retracement of the Jul-Aug slide has seemingly

capped recovery (peak was just a single pip above). A clean breach of this

level, located at $0.6880, would prompt bulls to target the Sep 12 monthly high

at $0.6895. Conversely, the rejection of $0.6880 encourages bears to focus on

$0.6849, which limited losses last Tuesday and Wednesday.

- Little on the radar in Australia today, which shifts focus to China's activity

figures. Australian labour market report will draw attention on Thursday, after

participants read through the latest RBA meeting minutes, due Tuesday.