AUDUSD Down As Risk Appetite Deteriorates On China Covid News

AUDUSD gained early in the session before turning offered. We were last close to 0.6650. AUD has underperformed the major currencies and NZD, as the USD rose, on news of Covid-related deaths in Beijing and further restrictions

• AUDUSD reached a high of 0.6683 and is now just off the low of 0.6637, as the initial support of 0.6634 remained unbroken.
• AUDJPY fell to 93.27 from a high of 93.81 earlier in the day and is now trading around 93.35. AUDNZD troughed at 1.080 but has moved slightly higher and is now around 1.0835. AUDEUR is back around 0.6460 and AUDGBP is up marginally to 0.5611.
• Equity markets are also lower across the board on the deterioration in risk appetite. The ASX is down only 0.2% whereas the Hang Seng has lost 2.9% and the CSI 300 1.6%. US e-minis are down from their intraday high and -0.3% from the NY close.
• Oil prices are also weaker with WTI trading below $80/bbl after a high of $82.64 on Friday. Iron ore is also softer on Covid news from China falling to around $95/tonne from around $97.50 earlier.
• The next major event in Australia is RBA Governor Lowe’s speech Tuesday evening on “Price Stability, the Supply Side and Prosperity”. Tonight is also quiet with BoE’s Cunliffe speaking and the Chicago Fed’s National Activity Index the only items of note.