The Australian dollar slipped against its most major counterparts in the Asian session on Monday, as coronavirus cases surged in the Australian state of Victoria despite progress in vaccination.
Victoria has recorded 246 new cases of COVID-19, highest since August 16, 2020.
New South Wales registered 1281 new local cases and 5 deaths, with the premier warning that a peak could occur “in the next week or so”.
The Reserve Bank of Australia will meet on Tuesday, with economists split over whether the central bank will postpone a plan to reduce bond purchase program due to worsening outlook.
The RBA is expected to leave the cash rate at a record low of 0.1 percent.
Asian markets traded mixed as disappointing U.S. jobs data triggered expectations about a delay in tapering of the bond purchase program.
The U.S. markets will remain closed on account of the Labor Day holiday.
The aussie declined to 0.7427 against the greenback, 0.9317 against the loonie and 1.5981 against the euro, off its early highs of 0.7456 and 0.9339, and near a 4-week high of 1.5920, respectively. The aussie may find support around 0.73 against the greenback, 0.92 against the loonie and 1.62 against the euro.
The aussie eased off to 1.0405 against the kiwi, after rising to 1.0420 earlier in the session. The aussie is seen facing support around the 1.01 mark.
In contrast, the aussie climbed to 81.83 against the yen from Friday’s close of 81.71. If the aussie rises further, 83.5 is possibly seen as its next resistance level.
Looking ahead, U.K. construction PMI for August will be released in the European session.