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.
