Extension Of UK Biz. Support Loans Helps GBP, Health Data Boosts AUD

GBP sits atop the G10 pile following the release of an FT report noting that UK Chancellor of the Exchequer will extend the Treasury's business support loan scheme in a bid to protect the economy from the impact of a resurging coronavirus. Sterling has been in demand despite warnings from top UK officials that the country may need a second lockdown if it fails to contain the renewed spread of infections.

• AUD has picked up a bid after Victoria's daily coronavirus case count fell to just 11, the lowest figure in more than three months. Against this backdrop, PM Morrison struck an optimistic note on the recovery of domestic labour market, while a Sydney Morning Herald report noted that the government will massively boost spending in the next budget to shore up the economy.
• Safe haven currencies have been pressured as e-minis have turned green after re-opening on the back foot. USD is the worst G10 performer, with domestic news flow revolving around a political stand-off re: succession after the late Supreme Court Justice Ginsburg.
• A softer USD has allowed USD/CNH to lose some altitude, but the rate is yet to test its multi-month lows printed last week.
• China's monthly LPR fixings (no change expected) and comments from ECB's Lagarde and Holzmann, Fed's Brainard and Riksbank's Ingves take focus from here.