/USD Still Higher As NSW Outlines Festive Restrictions

New South Wales Premier Berejiklian on the wires saying that Sydney will stick to current restrictions of 10 visitors per household, while part of Northern Beaches will stay in lockdown and be allowed up to 5 people in the worst hit areas. There will be a slight loosening in restrictions for Sydney from Dec 24-26, in that children under 12 will not be counted, but this will revert to normal on Dec 27. NSW reported 8 locally acquired cases yesterday.

• Australia reported November private sector credit data which showed lending rose 0.1% oM/M and 1.7% Y/Y, both in line with estimates.
• The flash Australia trade balance from ABS was also reported, they noted exports of goods in November 2020 increased 1%, imports of goods increased 11%, for November there is a goods trade surplus of $1.958bn.
• AUD/USD last at 0.7539, up around 16 pips. The pair did move as high as 0.7555 as the US dollar weakened slightly amid US President Trump issuing pardons for several convicted felons, but US dollar has seen a slight bid as Trump posts a video where he asks congress to amend the stimulus bill, which has soured risk appetite.
• Some heavy AUD puts expired around the 0.76 handle on Tuesday, some notable option action today with AUD 1bn of 0.7540-50 AUD puts were put on, expiring between Jan 17-25.