The Australian dollar continues to be depressed. That currency felt by 1 percent to the low level in 10 months to the USD. That was happened although the employment data is positive. 

That Australia’d employment data was released yesterday morning. However, The market refuses to reject it dur to the distortions reasons. It is based on the situation there. 

Several regions in Australia must be lockdown due to the increase in COVID-19 cases. Traders also use this excuse to selloff the AUD / USD pair. That is the condition right now. 

When this news was written, that pair felt down by 1.03% to the position of 0.7160. That is the lowest level since November. The Aussie weakening is also caused by the strong dollar.

The Impact of Lockdown has been seen before

Traders judged that the impact of the lockdown in Australia was already becoming an evident on employment figures in July, although it contradicted the real figures. 

So far, the Australian Unemployment Rate fell to a 12-year low of 4.6 per cent. However, most people looking for work stopped their activities due to the lockdown. 

So, it's not a truth that the unemployment is really decreasing. An analyst from CBA, belinda Allen, said that the employment data this time is not a signal from the market tightening. 

However, it is more caused by the decreasing ability of the people to work. The lockdown impact that they predicted is the employment contractions of 300,000 in August and September. 

The Salary Outlook Growth may be Affected

Based on the situation happened, the unemployment level may reach 5.6% in several month ahead. A worsening employment sector would be a blow to Australia's wage growth outlook.

In June alone it has been disappointing. Therefore, the market also expects that the Reserve Bank of Australia (RBA) rate hike will be pushed back to 2023 to create a more comfortable environment. 

As for technical terms, Richard Franulovich of Westpac said that the technical background of the Australian Dollar is already gloomy. It is getting gloomier when the currency broke.

It is to the MA 200 level at $0.7224. The next bear target is at the Low level from October and November in the range of US$ 0.6990. Meanwhile, the covid cases may increase again. 

The COVID-19 Cases Update 

It cannot be denied that the high cases are not noted yet. New South Wales reported 681 new cases in a single day. Lockdowns in Melbourne and Canberra are yet to show the signs of ending. 

Therefore, Franulovih estimates that the risk of aud/USD's downward extension to $0.70 also increases. Meanwhile, the USD index or DSF was rocketing in a yesterday trade. 

That currency reached the highest record for the 9 months period in the level of 93.50. Greenback becomes a winner in the forex market after the FOMC meeting minutes release. 

The release showed that most of The Fed’s representatives agree on the tapering projection to start this year. It is a gradually reduction done for the quantitative easing and included as a hawkish policy. 

The FOMC Minutes have Been Published

The Federal Reserve published the minutes from the FOMC meeting held in July 27-28. Minutes revealed the fact that most meeting participants assessed the scope to carry out tapering.

It is especially if the economic conditions continued to improve as expected, although the requirements of "further substantial progress" towards maximum employment had not been met.

That minutes make the market participants believe that the tapering will be announced by The Fed on this month or even next month. That hawkish shows how strong the dollar is.

In the other side, the corona virus case has triggered the risk-off sentiment that pressures its main rivals. Comdoll became the loser of the major standings with AUD/USD plummeting more than 0.8 percent.