Monday's Asia-Pac session saw AUD/USD push...>

AUSSIE: Monday's Asia-Pac session saw AUD/USD push higher amid firmer risk

sentiment, but the rate took a nosedive later in the day on the back of renewed

USD purchases, inspired by comments from Fed members who pushed back against

speculation that the Fed might resort to negative interest rates.

- The rate's second consecutive failure to establish itself above the 100-DMA

lends support to the bearish case, drawing the 50-EMA at $0.6394 into focus. A

break below there would open up May 4 low of $0.6373. Bulls look for a clean

breach of the 100-DMA at $0.6532, with the key near-term resistance coming up at

$0.6570, the peak of Apr 30. The rate trades flat at $0.6490 at typing.

- Treasurer Frydenberg noted that steps 1-3 of the gov't's plan of easing

lockdown measures would result in a GDP increase of A$9.4bn/month. Per BBG

calculations, this amounts to ~60% of the GDP lost due to the Covid-19 outbreak.

- Australian NAB Business Confidence hits the wires today. Coming up later in

the week we have Westpac Consumer Confidence & wage price indices (Wednesday),

as well as consumer inflation expectation and labour mkt report (Thursday).

Worth watching today's Chinese inflation data as well.