Light Pressure On The Aussie To Start The Week

AUD has fallen afoul of the broader dent to risk appetite flagged elsewhere, although AUD/USD has recovered from worst levels ($0.7109) to last trade 5 or so pips softer on the day, just below $0.7120. Technically, initial support levels come in at the Dec 14 low ($0.7090) and the Dec 7 low ($0.7040). Bulls need to overcome the Dec 16 high ($0.7224) to regain upward impetus

• Domestically, there has been some calls for the reimposition of firmer mask wearing rules and QR code usage from some quarters in the wake of the global Omicron outbreak, but Australian Federal Health Minister Hunt has pointed to a “very different set of circumstances” in play in Australia vs. global counterparts, flagging high vaccination rates and the impending summer season. Elsewhere, the NSW Premier also sounded fairly relaxed re: the COVID situation, given the high vaccination rate in the state.
• The local Australian docket is virtually empty today. The minutes from the RBA’s most recent monetary policy decision will cross tomorrow.