Aussie and Kiwi Rally on Omicron Optimism – 7 December, 2021

Markets wagered the Omicron variant would not have as devastating an effect on the global economy as originally anticipated which helped sustain a rally for the Aussie and Kiwi. The kiwi was hanging on to $0.6777 having slipped 0.5% overnight, just above a 13 month low of $0.6737. The Aussie rallied 0.9% to $0.7121, out from the 13 month low it hit last week of $0.6994. Better data on trade between China and the United States helped the currencies rally, prompting gains for commodities. The Reserve Bank of Australia also helped the Aussie hold its ground with an upbeat economic outlook. The Australian dollar is up 1.71% against the greenback, on track for its best performance in three months, and 2.28% versus the yen, on track for its best performance since mid October.