Australian States Loosen Social Restrictions

AUD/USD has been rangebound in early trade, the rate has faded its initial uptick and trades +5 pips at $0.7307. Preliminary readings of Markit PMIs showed acceleration in expansion across both m'fing & services sectors, "setting the scene for a stronger GDP performance during the final quarter of 2020", but the report noted that "the subdued rise in new business remains a concern".

• Over the weekend, Victorian Treasurer Pallas told the AFR that the the "Victorian government will deliver an unprecedented A$23.3bn budget deficit next financial year, with net debt expected to blow out to A$155bn within three years, after the state's tax revenue fell by 11.9%." Meanwhile, Victoria eased some of its social restrictions after recording 23 days without new coronavirus infections, while NSW removed border restrictions with Victoria. South Australia also loosened its lockdown measures after discovering that an important case misled contact tracers.
• Treasurer Frydenberg said in a statement that the gov't will expand eligibility for the temporary full expensing measure, in accordance with the 2020/21 Budget.
• Elsewhere, Trade Min Birmingham told Sky that the recent remarks by the Chinese ambassador amount to "threats of coercion" and stuck to the opinion that "the ball is in China's court" for initiating dialogue.
• Bulls need a move through Nov 9 & 17 highs of $0.7340 before targeting Sep 16 high of $0.7345. Bears see initial support at Nov 13 low of $0.7222.
• Looking ahead, Australian flash trade data & a speech from RBA Dep Gov Debelle on "Monetary Policy in 2020" headline the local docket tomorrow. First Q3 GDP partials (completed construction work & private capex) will hit on Wednesday & Thursday respectively.