Victoria Roadmap Continues To Spark Controversy

AUD/USD stuck to a narrow range on Monday as liquidity and headline flow were limited by a public holiday in the U.S. The $0.7300 figure remained intact after capping gains on Friday and the pair finished the day marginally lower. BBG trader sources cited AUD/NZD demand, linked to familiar RBNZ messaging re: actively preparing alternative MonPol tool, and cross-flows may have helped AUD/USD stay afloat amid the appreciation in USD.

• Victorian officials have clashed with the federal government and the business community over the state's "roadmap" out of lockdown. PM Morrison and Health Min Hunt suggested that under Victorian regulations Sydney would be under lockdown too, while Victoria Premier Andrews rejected any comparisons to NSW, pointing to the idiosyncratic features of his home state and its Covid-19 outbreak. Some further criticism came after the conservative Institute of Public Affairs estimated that the roadmap could wipe out 260,000 jobs.
• AUD/USD sits +4 pips at $0.7281 at typing. A move through Sep 3 high of $0.7340 would please bulls, allowing them totarget Sep 1 high of $0.7414. Conversely, the first support to watch is at $0.7222, the low of Sep 4. Below there would open up Aug 20 low of $0.7136.
• Australian NAB Business Confidence comes out later today. Then, focus moves to Wednesday's Westpac Consumer Confidence and housing finance data.