Softer At The Start To The Week; M&A News On The Radar

AUD/USD has edged lower amid broader risk-off flows this morning, as several European governments ratcheted up their attempts to contain the spread of new Covid-19 infections, the U.S. declared a record tally of new cases, while House Speaker Pelosi & White House Chief of Staff Meadows exchanged accusations of "moving the goalposts" in their difficult fiscal talks.

• That being said, the AFR reported this morning that Coca-Cola Amatil has agreed to a A$9.3bn takeover offer from Coca-Cola European Partners, following earlier speculation that the two were in talks to strike a deal.
• Australian Treasury Secretary Kennedy testified to the Senate today, noting that the Treasury's full employment estimate is around 4.75-5.00%. He noted that effective unemployment peaked at about 15% but the economy is rebounding and pointed to divergent recovery trajectories among Australian states.
• On the coronavirus front, Victoria Premier delayed a decision to ease lockdown measures further, owing to a new infection cluster in the Melbourne suburbs. Separately, PM Morrison said that all states & territories save for Western Australia have agreed to a framework that would end regional border closures before Dec 25.
• AUD/USD last trades -15 pips at $0.7124, with bears looking for a dip through Oct 20 low of $0.7021, followed by Sep 25 low & bear trigger at $0.7006. Bulls need a clearance of Oct 23 high of $0.7158 before targeting Oct 15 high/trendline resistance at $0.7170/76.
• Australia releases quarterly CPI data on Wednesday. NAB Business Confidence comes out Thursday, with private sector credit & PPI coming up Friday. RBA's Debelle and Bullock are set to speak Tuesday.