Rebound Retraced

After rebounding on Thursday AUD/USD retraced most of the move on Friday, the pair finished the session 33 pips lower at 0.7262, the pair last down 3 pips at 0.7259. The greenback trimmed Thursday's losses to close back toward the upper end of the week's range Friday, keeping the USD Index within range of the bull trigger at the mid-August high of 93.73. Friday saw modest risk-off trade, with equities edging lower on the back of further concerns surrounding China's property development giant Evergrande.

• From a technical perspective the AUD/USD bounce needs to stick to reverse the near-term downtrend which for now remains intact and continues to target 0.7220 ahead of Fibonacci support at 0.7194. The bear trigger rests below at 0.7106, Aug 20 low - a break would confirm a resumption of the bear trend that started late February. Firm resistance is seen at 0.7356, the 50-day EMA.
• Weekend news flow saw PM Morrison continue to push home the message surrounding the re-opening timelines he previously outlined, but there was little else of note.
• The local economic docket is empty today, markets look ahead to retail sales, private sector credit and PMI data later in the week.