During a five-day downturn, the AUD/USD bounces off an intraday low and approaches the yearly trough.
The cabinet decided on a covid unlock roadmap, according to PM Morrison.
Queensland will reduce lockdown in some areas after NSW reports 31 additional locally acquired cases.
Fed tapering is expected to begin in H1 2022, according to the IMF.
AUD/USD remains under pressure between 0.7465-60, down 0.07 percent on the sixth day of losses on early Friday. As a result, the Australian dollar continues under pressure near its lowest level since early December 2021, owing to Australia’s coronavirus (COVID-19) problems and the market’s cautious mood ahead of the US Nonfarm Payrolls report (NFP).
Despite Queensland’s willingness to ease some virus-related restrictions in some areas, ABC news reports that “lockdown will continue for 24 hours in Brisbane LGA and Moreton Bay LGA.” New South Wales (NSW) also reports a spike in local infections, reversing the previous day’s pullback for the time being.
“National Cabinet has decided on a fresh pathway out of COVID-19,” Australia’s Prime Minister Scott Morrison said in response. In the current phase, the Australian leader also indicated that lockdowns will be the final resort. The specifics of which are becoming increasingly unclear as the country looks for more optimism in the midst of its difficulties. As a result, the AUD/USD currency pair pays no attention to the news.
It should be noted, however, that the most recent ABC news updates show an 8.0 percent fully vaccinated Australian population, up from 4.0 percent earlier in the week. Despite this, national politicians continue to bicker over the AstraZeneca vaccines, which the center has rejected owing to blood clotting concerns.
In other markets, the US dollar is holding steady near a three-month high hit the day before, as traders seek refuge in the greenback amid fears of a Fed rate hike and good US data. The International Monetary Fund’s comments may also support the USD (IMF). “The Federal Reserve will probably need to begin raising interest rates in late 2022 or early 2023 as higher government expenditure keeps inflation above its long-run average objective,” the worldwide institute recently stated.
S&P 500 Futures seesaws near the record high, as the 10-year Treasury yield fell 1.6 basis points (bps) to 1.464 percent by press time. In addition, Asia-Pacific markets are mixed.
Moving on, covid updates may produce intermediate moves in the AUD/USD price, while the US NFP, which is predicted to be 690K versus 559K previously, will receive the most attention. It’s worth mentioning that a positive result might drive the Fed closer to making the long-awaited monetary policy change, allowing the USD to gain even more ground.
Failure to bounce from the previous seven-month low of 0.7477 leads to AUD/USD bears targeting the 0.7415 peaks in August 2020. A clear upside break of the 0.7477 immediate hurdle, on the other hand, will target the 0.7500 level and the 200-SMA near 0.7570 to justify the corrective pullback./n
