Early indicative trade saw AUD/USD show......>

AUSSIE: Early indicative trade saw AUD/USD show below $0.6500, but the move was

short-lived, with the rate last +10 pips or so at $0.6545, as e-minis tick

higher. As a reminder, the backend of last week's Sydney trade saw focus fall on

the fiscal dynamic surrounding clerical errors evident on the behalf of

businesses inputting their requirements for the government's JobKeeper scheme,

which resulted in a A$60bn over-projection in terms of fiscal spending

requirements. That being said, Sino-U.S. tensions and worry surrounding Hong

Kong outweighed any hope re: fiscal tailwinds, as the cross edged lower on

Friday. Weekend news flow focused on the political fallout of the JobKeeper

errors, in addition to the continued, gradual rollback of COVID-19 restrictions

in NSW & Victoria. Elsewhere, a weekend interview saw U.S. Sec of State Pompeo

warn that the U.S. could "simply disconnect" from Australia if Victoria's trade

deal with Beijing affects U.S. telecoms. Initial resistance seen at $0.6616, the

May 20 high, while bears need a sustained break below $0.6506, the low from May

22, to start turning the tide in their favour.

- The local docket is very limited today.