Australian Dollar Declines Amid Delta Virus Worries

The Australian dollar moved lower against its major trading partners in the Asian session on Friday, amid concerns over a slowdown in the global economic recovery due to a resurgence in cases of Delta variant of the virus.

Worries that the Fed is on track to start tapering its bond buying program before the end of the year also weighed on the currency.

China's crackdown on the country's technology companies intensified by the passage of a major data protection law that restricts businesses from collecting sensitive personal data.

The new law outlined a comprehensive set of rules around data collection, processing and protection for tech companies.

The New Zealand government extended its lockdown till August 24 after reporting eleven new cases today.

In the U.S., three Senators had tested positive for Covid-19 despite being vaccinated.

The aussie dropped to 9-1/2-month lows of 0.7106 against the greenback and 1.6436 against the euro, from its early highs of 0.7156 and 1.6320, respectively. The aussie is likely to face support around 0.70 against the greenback and 1.68 against the euro.

The aussie depreciated to near an 8-month low of 77.90 against the yen and a 3-day low of 1.0434 against the kiwi, following its prior highs of 78.63 and 1.0483, respectively. The aussie is seen finding support around 76.00 versus the yen and 1.03 versus the kiwi.

In contrast, the aussie rose to 0.9195 against loonie, its highest level since August 17. The aussie may face resistance around the 0.93 region.

Looking ahead, Canada retail sales for June and new housing price index for July will be published in the New York session.