Aussie sinks on lockdown news

The Australian dollar is clearly on the back foot on Tuesday morning after stunning news of hard lockdown in Melbourne. The COVID cases have been on the rise in Victoria state but at around 150 per day they are still way lower than in some other countries (especially the US). Clearly the Australian authorities are taking these risks more seriously and have reintroduced lockdown in Melbourne where some businesses need to close and people can leave their homes only in certain conditions.

The AUDUSD has already fully recovered from the pandemic shock and from such perspective today’s reaction looks benign. Will the economic hit to the Australian economy translate into more selling from the resistance?

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Aussie sinks on lockdown news

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