Covid Matters Draw Attention After Poor Showing From AUD Thursday

The AUD fell out of favour Thursday, as hawkish overtones in the FOMC's Dec meeting minutes released Wednesday generated selling pressure in Sydney trade. AUD/USD remained in negative territory as participants assessed the Fed's policy outlook ahead of today's release of U.S. NFP data.

• AUD/USD has ticked higher this morning, it last sits +8 pips at $0.7170. Should the rate manage to break above Dec 31 high of $0.7278, bulls could take aim at the 61.8% retracement of the Oct 28 - Dec 3 downleg at $0.7341. Conversely, a slide through Dec 22 low of $0.7121 would bring key support from Dec 20 low of $0.7082 into play.
• Coronavirus matters remain under scrutiny, with the Sydney Morning Herald reporting that "the NSW government is preparing to announce a major reversal of Covid-19 restrictions by shutting nightclubs, banning singing and dancing in pubs, and pausing major events and some elective surgery in response to the state's surging Omicron caseload."
• Domestic highlights next week include building approvals (Monday), trade balance & retail sales (Tuesday), job vacancies (Wednesday) & housing finance data (Friday).