The number of COVID-19 cases in NSW has surged again today with 22 new local cases, putting the total number of cases linked to the Bondi cluster at 65.
NSW Premier Gladys Berejiklian announced a lockdown for four local government areas in Sydney, including the CBD until next Friday. Workers in the Sydney CBD are, as of now, unable to leave the home without good reason.
ACT stay-at-home order has been extended to all of metropolitan Sydney, and Queensland has further tightened NSW border controls, stopping short of a total ban.
A number of new venues and public transport routes have been add to the growing list of casual contact locations and shoppers have largely deserted some shopping centres and crowded business areas.
On the business side, the Australian sharemarket largely brushed aside COVID worries today with the S&P/ASX 200 gaining 0.5 per cent, or 32.7 points, to 7308.
That said, the growing concerns will likely show its impact from next week.
Despite marginal recovery, the Australian dollar is still trading on the back foot as the overseas market has been feeling the jitters over the Aussie in the past days. Concerns over rising coronavirus cases and the prospects of tougher lockdowns, particularly in NSW are dragging on risk sentiment.
The AUD is trading at US75.80¢ against the US dollar, after recent dropping to a level it has not seen since late December.
Although the New Zealand dollar has also been falling, the Kiwi has been stronger against the Aussie. cross-currency pair further extended the downtrend, likely on the way to below AUD $1.6.
Both currencies fell early this week amid further weakness in iron ore prices, as China tightens its oversight of the market and targets speculative trading and steel production.
Further developments around the Sydney Covid-19 cluster and lockdown area expansion paving a slippery slope for the high but fragile business confidence will likely continue to weigh heavily on the Australian dollar in coming weeks.
Meanwhile, the US dollar index which measures the greenback against a basket of major currencies holds relatively steady just under 92 points.
