AUD/USD was trading in proximity to a 12-month trough on Tuesday, after Moderna’s CEO warned COVID-19 vaccines would probably not be as effective against the Omicron virus variant as they had been with other types.
“There is no world, I think, where (the effectiveness ) is the same level . . . we had with Delta,” Moderna Chief Executive Officer Stéphane Bancel said in an interview with the Financial Times.
The Aussie and other risk-sensitive assets remained under pressure amid the uncertainty surrounding Omicron’s impact on global economic recovery.
Meanwhile, Australian authorities said earlier Tuesday that an international traveller, who was most likely infected with the Omicron strain, had visited a busy shopping centre in Sydney. If that information is confirmed, this would be the sixth known person infected with the new virus strain in Australia.
“(The Omicron variant) has injected a considerable degree of uncertainty with a need for patience as the scientific and health community assess its severity, the effectiveness of current vaccines, and the time frame for the production and distribution of new Omicron-specific vaccines if needed,” RBC Capital strategists wrote in an investor note.
“Early signs on transmissibility and mutations argue for caution.”
As of 11:24 GMT on Tuesday AUD/USD was edging down 0.19% to trade at 0.7127. Earlier in the trading session, the Forex pair slipped as low as 0.7092, which has been its weakest level since November 4th 2020 (0.7048). The major currency pair has retreated 5.19% so far in November, following a 4.03% gain in October.
Bond Yield Spread
The spread between 2-year Australian and 2-year US bond yields, which reflects the flow of funds in a short term, equaled -12.17 basis points (-0.1217%) as of 9:15 GMT on Tuesday, up from -15.9 basis points on November 29th.
Daily Pivot Levels (traditional method of calculation)
Central Pivot – 0.7138
R1 – 0.7162
R2 – 0.7184
R3 – 0.7208
R4 – 0.7233
S1 – 0.7116
S2 – 0.7092
S3 – 0.7070
S4 – 0.7049
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