China headlines takes the shine off AUD -.....>

FOREX: China headlines takes the shine off AUD

- AUD started the week particularly well, with AUD/USD topping $0.67 to trigger

a rally that saw the pair touch levels not seen since late January. The initial

catalyst for the early optimism appeared to be the lack of any firm

countermeasures against China in Trump's late speech on Friday. Much of this

sentiment, however, was reversed as Bloomberg reported that some Chinese

state-owned commodities traders had received orders to stop imports of US farm

goods including soybeans as Sino-US tensions ratcheted higher.

- With the China headline throwing the futures of the phase 1 US-China trade

deal in doubt, equities have come off recent highs, although cash European

markets remain in the green.

- PMIs across Europe have generally held up, but prices were generally unmoved.

AUD remains at the top of the pile, with the greenback lagging.

- Focus shifts to May ISM manufacturing data, with the data seen to still show a

dent in growth over the month, albeit at a slower pace of contraction that in

April. Construction spending is also due.