Negative sentiment weighs on AUD/USD
A bit of a divergence is creeping into markets.
AUD/USD is at a fresh session low at 0.7435m, down 45 pips on the session. But Treasury yields have bounced with 10s at 1.330% from a low of 1.310%.
Technically, this is an important short-term support zone with the lows of the week just below.
This is all despite a good Australian employment report earlier today. Jobs at 29.1K were in line with the 30.0K consensus but the unemployment rate fell to 4.9% from 5.5% – below pre-pandemic times. The full-time component of the jobs report was also +51.6K.
The market instead might be focusing on the rising number of cases in Australia and the fresh lockdown in Victoria. It could be a long wait with vaccination progress slow to come by.
In the bigger picture, the delta variant may be weighing on sentiment.
This article was originally published by Forexlive.com. Read the original article here.