Australian Dollar is continuing to under-perform New Zealand and Canadian Dollar. While Victoria’s lockdown is set to be eased by mid-night, it’s uncertain what the New South Wales government could do on restrictions after the end of the month as delta variant is still spreading quickly in the community. Whether RBA would taper asset purchase beyond September is now is question as renewed lockdowns are derailing recovery.
AUD/NZD edged lower today as fall from 1.0944 is still in force. Downside momentum weakened a little on oversold condition in daily RIS. But there is no sign of bottoming yet. With 1.0611 resistance intact, AUD/NZD is on track to 1.0415 support next.
AUD/CAD’s decline from 0.9991 resumed after failing to sustain above 55 day EMA. It’s still trying to draw support from 0.9247 key support level but firm break of 0.9417 resistance is needed to indicate short term bottoming. Sustained trading below 0.9247 would open up further fall towards 61.8% retracement of 0.8058 to 0.9991 at 0.8796.
