The week started rough for the AUD as the US cuts off travel with South Africa. The safe-haven currency made the decision amid the threat of a new pandemic variant, Omicron. The announcement affected the market significantly, hurting the portfolio of numerous Australian forex brokers.
The new virus variation, called Omicron, sent US stocks below par during the latest Wall Street session. Similarly, Asian equity spaces also remained closed during the week after the WHO shared concerns regarding the new variant. The market is likely to face troubles throughout the week as scientists assess the variant’s threat.
Amid the ongoing chaos, Australia releases its third-quarter company gross profits and business inventories. Experts expect the data to surpass 3% and 0%, respectively. The expected numbers mean a decrease in both data sets compared to the Q2 results.
The primary reason behind the dip is the lockdown in Victoria and South Wales. Australia recently vaccinated 90% of the 16+ years old population. The process might take another quarantine session before moving forward.
Japan’s retail sales also surpassed the 0.9% wires for October. The number showcased a surge compared to -0.5% in September. The figures were still below the expected 1.1%.
Indonesia is also set to release its October motorbike sales as the Philippines also increased the September retail price index.
On the other side of the market, AUD-USD is nearing the August low, 0.7106, after losing 1.62% value recently. The previous week marked the fourth consecutive session where the currency pair fell. If it continues to dip below 0.7106, its price will reach a level not witnessed since November 2020.
The currency pair must aim for a bearish crossover between the 20 and 50-day SMA.