The aussie is weakest in the G10 over the past week. The USD’s support from Federal Reserve expectations suggests scope for a probe of the 0.7000/50 area in coming days, economists at Westpac report.

RBA likely to note the downside risks from the new covid variant but reserve judgement

“It is likely to be difficult for AUD/USD to rally very far in the next 10-14 days, given the expectations for the 15 December FOMC decision in the wake of Fed Chair Powell’s hawkish shift and the anxious wait for hard evidence on the efficacy of existing COVID-19 vaccines against the Omicron variant.”

“The Reserve Bank of Australia seems likely to note the downside risks from the new variant but wisely to reserve judgement, producing limited AUD impact.”

“The USD’s support from Fed expectations suggests scope for a probe of the 0.7000/50 area in coming days.”