Victoria is home to Australia’s second largest city of Melbourne. Melbourne has had 4 lockdowns (much stricter than the current lockdown in Sydney). Australia remains vulnerable to outbreaks with such a slow rollout of vaccinations. While it appears not to impact on the currenyc day-to-day AUD/USD recently hit its lowest for the year. The acceleration of the current wave (in Sydney) prompted Goldman Sachs to slash the economic growth projection for the entire country for this current quarter:
The RBA will not be able to ‘look through’ an extended lockdown and the implication for policy is looser for longer.