AUD/USD strengthens to near 0.6600 as US government shutdown raises uncertainty

• AUD/USD gains ground near 0.6590 in Monday's early Asian session.
• The US September NFP report was due for release on Friday, but was not published due to the government shutdown.
• RBA warned risks to the global financial system are rising. 

The AUD/USD pair trades in positive territory around 0.6590 during the early Asian session on Monday. The US Dollar (USD) weakens against the Australian Dollar (AUD) amid uncertainty surrounding a US government shutdown and delayed key data releases. 

The US government shut down operations last week as deep partisan divisions prevented Congress and the White House from reaching a funding deal. As a result, the US Labor Department will suspend economic data releases, including the monthly employment report expected on Friday. Fear of a prolonged US government shutdown could exert some selling pressure on the Greenback and create a tailwind for the pair. 

"If the shutdown lasts for a long time, and I mean by several weeks, yes, then, of course, people will begin to question governability in the U.S., said Thierry Wizman, global FX and rates strategist at Macquarie in New York.

Last week, the Reserve Bank of Australia (RBA) noted in its semi-annual Financial Stability Review (FSR) that risks emerge from elevated asset prices and stress in sovereign debt markets. It noted that highly leveraged trades and the expansion of the non-bank sector are increasing market vulnerabilities. The Australian central bank further stated that weakness in China's property sector is weighing on banks and is likely to persist. This, in turn, might undermine the China-proxy Aussie as China is a major trading partners for Australia.