Australian Dollar Stumbles as Slow Vaccinations Outweigh Iron Rally

(Bloomberg) -- Aussie bulls will be gnashing their teeth after the slow pace of vaccinations in Australia led to lockdowns that are hurting the currency just as iron ore consolidates above $200 a metric ton. Even today, mining staff are being retested on return from sites in the country’s north after a fresh spread of infections. Coming after the AUD/USD slumped because of the Federal Reserve’s hawkish pivot, the highly infectious Delta variant’s impact on the economy is pushing the pair closer to the 0.7476 year-to-date low hit this month. The Aussie is down almost 7% since its February high and a close below the June low will see speculators gang up on the currency to bet that lockdowns could send it toward 0.72.

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