AUD and NZD were among the losers in early post-weekend trade:
They were not helped by US futures reopening for the week:
Lower markets responding to the deterioration of news over the weekend, for example:
- Tokyo reports the highest number of new COVID-19 cases since May 5
- Weekend news - record number of US coronavirus cases and hospitalisations continue
- Beijing partial shut down imposed after new coronavirus outbreak at market
And, its not all bad news, a bit of hopium in this:
Some of the chatter about the place is that hedge funds & other short-term speculators sold AUD early with an eye on the new infections in Beijing. I'd be wary of placing too much weight on both the news of the outbreak (unless there are further the market will forget about this fairly soon) and also on the likelihood of such sellers adding more - this selling would be a lightweight conviction trade, not to be held for an extended move.
News and sentiment is driving these markets, the acceleration of sever infections requiring hospitalisation in the US is another negative to keep an eye on.
