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Australia's National Cabinet Discusses International Arrivals Cap

AUSSIE

AUD/USD recouped its initial losses on Thursday, as the DXY retreated, even as U.S. equity benchmarks traded on a softer footing. Its earlier slide, briefly interrupted by a strong jobs report out of Australia, was driven by broader risk aversion and continued Sino-Australian tensions. That said, the rate managed to eke out some gains at the end of the day, extending its winning streak to five straight sessions.

  • Australia's National Cabinet meets today and the main point on their agenda is the cap on international arrivals. PM Morrison said that the cap will be increased from next Friday, asking states to boost their quarantine capacity accordingly, but is meeting resistance from Western Australia and Queensland.
  • Treasurer Frydenberg told Sky that labour market conditions remain very challenging.
  • The rate last sits +3 pips at $0.7315 and a break above Sep 16 high of $0.7345 would turn focus to the 76.4% retracement of the Sep 1 - 9 sell-off at $0.7362. Meanwhile, a dip through Sep 10 low of $0.7248 would bring Sep 9 low of $0.7192 into play.
  • Australia's economic docket is virtually empty today, so focus turns to next week's flash CBA PMIs as well as preliminary retail sales and trade balance, all due Wednesday. Before that, RBA Dep Gov Debelle speaks on Tuesday.

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