Commodity Currencies AUD, NZD Under Pressure as Australia Sees Surge in COVID-19 Cases

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Commodity Currencies AUD, It’s a bearish start to the final day of 2021 for leading commodity currencies; AUD and NZD as fresh COVID-19 cases across Australia climb higher and raise concerns about the economic outlook down under. At the time of writing, AUD/USD is trading at around $0.725.

The Australian dollar has slipped from the highest levels seen in six weeks on account of the rising caseload. It had previously strengthened amid a return in risk appetite; in global financial markets; which had driven investors away from the US dollar and towards riskier instruments such as equities and riskier currencies.

So far this year, AUD/USD has lost around 5.8% of its value on account; of the pandemic related worries. Most of the weakness in the currency pair can be attributed to the rising US dollar, which has posted a strong performance through the year as a safe haven currency amid prevailing uncertainties about the economic toll of the COVID-19 pandemic which still rages on and keeps the world on edge.

Commodity Currencies AUD, Meanwhile, NZD/US Japan’s Retail Sales Pick Up in November as COVID-19; Cases DropD is also showing signs of some weakness, after slipping from a high of $0.6857 touched in overnight trading during the previous session. While it remains well above the 13-month low it traded at a short while ago, the currency pair is experiencing some bearish moves on the last day of the year.

So far this year, NZD/USD has weakened; by around 4.9%; mainly on account of the risk-off mood in global markets due to the pandemic. The latest bearish moves came after NeW south Wales saw reported a surge in fresh infections by over 21,000, far above the 200 odd cases being reported during the beginning of the month.

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