Gapped Lower

Weekend developments saw AUD/USD gap lower at the open, the pair opened at 0.7709 and dropped as far as 0.7691 before grinding higher to 0.7725. The decline came as a drop in the Turkish lira spurred broad risk aversion.

• Australia's vaccination efforts are being slowed by torrential rain and flooding, there are thousands of residents in parts of Sydney and along the New South Wales coast evacuated as rivers overflow. The severe wet weather is expected to intensify into the middle of the week, vaccine deliveries are expected to be slowed.
• From a technical perspective AUD/USD found resistance Thursday at 0.7849. This level marks an important intraday bull trigger where a break is required to reinforce the recent bullish cycle and suggest scope for an extension higher. This would open 0.7860, a Fibonacci retracement and beyond. On the downside, support to watch is at 0.7699, Mar 17 low. A clean break would expose the key support and bear trigger at 0.7621, Mar 9 low.
• There is no local economic data on the docket on Monday, the highlight this week is Markit PMI data on Wednesday.