Australia’s COVID-19 Cases Hit 1 Million Due To Omicron Surges

Author: Mr. Amar – Technical Analyst

As the Omicron variant spread vastly throughout the globe, it was shocking that Australia now has passed 1 million cases as of today. This causes an uncontrollable situation in hospitals and puts a strain on supply chains. Thus, this made Australia’s benchmark ASX

200 traded down 0.1%, after retracing some of its earlier losses. The heavily-weighted financials subindex slid 0.08%, but the energy and materials indexes advanced 1.29% and 1.25%, respectively, while the Australian dollar traded up 0.11% at $0.7186.

It can be seen for major pair like AUD/USD begins the second week of 2022 by bouncing off back to the swap zone around 0.72000. Despite the Australian Dollar weakening due to the rise of Covid cases last week and the result of Non-Farm Payroll also indicates weaker Dollar Index due to fewer jobs opening offered, but AUD/USD managed to climb up higher to make retracement. The daily chart still shows the major downtrend for the pair in the long run and this is on the same par with fundamental analysis which shows the downfall of both Australian and US Dollars.

The analyst predicted that AUD/USD will either bounce up to 0.72000 or the fresher engulfing area on the $4-hour chart which is at 0.72600. The inability to cross the key moving averages joins the receding bullish bias of the MACD and steady RSI to keep sellers hopeful.