Australian Dollar Falls On Lockdown Extension In Sydney
28 July 2021 - 1:53PM
RTTF2
The Australian dollar was lower against its major counterparts
in the Asian session on Wednesday, as a lockdown in Sydney was
extended by four weeks as coronavirus cases continue to rise
despite stay-at-home orders since late June.
The state of New South Wales, of which Sydney is the capital,
reported 177 new infections on Tuesday, its biggest daily increase
since March 2020.
The states of Victoria and South Australia lifted the lockdowns
after outbreaks came under control.
NSW State Premier Gladys Berejiklian warned of tougher policing
to boost enforcement of wide-ranging social distancing rules.
As a sell-off in Chinese shares, along with economic slowdown
worries due to the spread of the Delta variant virus also weighed
on the currency.
Investors await a statement from the Fed policy meeting and a
press conference by Fed chair Jerome Powell due tonight for clues
on the timing of stimulus tapering.
The aussie fell to 0.7349 against the greenback and 80.67
against the yen, off its early highs of 0.7375 and 81.05,
respectively. The aussie is likely to locate support around 0.70
against the greenback and 78.00 against the yen.
Reversing from its early highs of 1.6028 against the euro and
1.0594 against the kiwi, the aussie depreciated to 1.6078 and
1.0567, respectively. The aussie is seen locating support around
1.63 against the euro and 1.03 against the kiwi.
The aussie edged lower to 0.9248 against the loonie, after
rising to a 5-day high of 0.9279 earlier in the session. On the
downside, 0.90 is possibly seen as its next support level.
Looking ahead, Swiss economic sentiment index for July is set
for release in the European session.
Canada CPI, U.S. wholesale inventories and advance goods trade
balance, all for June, are due in the New York session.
At 2:00 pm ET, the Fed announces its decision on interest rate.
Economists widely expect the federal funds rate to be kept at
0-0.25 percent.
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