Credit Agricole CIB Research discusses AUD outlook amid the extended Sydney lockdown.
"Australian business and consumer confidence over the coming two days will provide some of the first pieces of data to show the impact of the extended lockdown in Sydney, which a couple of weeks back was extended to two months," CACIB notes.
"While Australian business confidence and conditions (Tuesday) data as well as consumer confidence data (Wednesday) are not normally big market movers, the lockdowns in NSW and Victoria and potential large declines in these data could weigh on the AUD. While there are no consensus estimates for these data sets, the market will be expecting weak readings. Announced government support for businesses and households could help support business and consumer confidence, which will be declining from high levels," CACIB adds.