Benefits From Risk-On Reaction To Formal Beginning Of U.S. Transition Process

AUD/USD advanced Monday as the greenback picked up a bid, after U.S. Markit PMIs defied expectations of a moderation in the rate of expansion and surged to multi-year highs, fuelling hopes for a swifter economic recovery in the U.S. The move allowed the pair to wipe out earlier gains, registered on the back of positive weekend news flow.

• That being said, AUD/USD popped higher this morning, amid a risk-on reaction to the news that U.S. General Services Administration has ascertain Joe Biden as the "apparent winner" and informed him that the formal transition process can begin.
• Earlier this morning, ANZ Weekly Consumer Confidence snapped 11 months of gains and fell to 104.5 from 106.6.
• In regional news, Queensland said it will fully re-open its border with NSW from Dec 1. Elsewhere, it is a Budget Day in Victoria.
• Australian PM Morrison commented on the Sino-Australian spat, noting that the U.S. and China should not pressure other nations to choose sides and make "binary choices".
• The rate last sits +18 pips at $0.7304, with bulls looking to take out Nov 9 & 17 highs of $0.7340 before taking aim at Sep 16 high of $0.7345. Bears keep an eye on the 20-EMA at $0.7247 before targeting Nov 13 low of $0.7222.
• Focus in Australia turns to flash trade balance & a speech from RBA Dep Gov Debelle, due today. Later in the week, completed construction work comes out Wednesday & private capex hits Thursday.