• AUD/USD down 0.2% early Monday after closing 1.27% lower on Friday

• Opens at 0.7036 after 0.7043 New York close, trades a 0.7016-0.7039 range

• Escalating Middle East tensions add to risk aversion

• Israel strikes Beirut despite truce, prompting retaliation attempt from Iran

• Stocks selloff, Fed rate expectations, broadly stronger USD weigh on AUD

• Chip slump erases $1.3 trillion in stock market value

• Fed Dec rate hike chances jump to 78.5% on CME Fedwatch tool after jobs data

• Support 0.7000-05, 0.6980, 0.6940-50, resistance 0.7075-85, 0.7110

• Markets in Sydney and Melbourne closed Monday; Friday range 0.7038-0.7144
AUD:

(Krishna Kumar is a Reuters market analyst. The views expressed are his own.)