Australian dollar trades low against the American dollar during Monday Early morning Asian session.  The rationale behind the move can be linked to negative headlines at Australia and China.

Unfortunately Australia recorded a  high daily covid infection number, 37,152 at the latest per the latest News. Even so, Australia Prime Minister Scott Morrisson said, “We’re now at a stage of the pandemic where you can’t just make everything free, because when someone tells you they want to make something free someone’s always gonna pay for it and it’s going to be you.”

On the other hand, Reuters reported that  “Worldwide infections hit a record high over the past seven-day period, with an average of just over a million cases detected a day between Dec. 24 and 30.”

The recent Evergrande issue also weighs on the AUD/USD pair. China Evergrande Group’s (HK:3333) Hong Kong shares were suspended from trading earlier in the day, with the property developer declining to provide a reason for the suspension.

Evergrande, is struggling to repay more than $300 billion in liabilities, including nearly $20 billion of international market bonds that were deemed to be in cross-default by ratings firms last month after it missed payments.

On Friday, Evergrande dialled back plans to repay investors in its wealth management products, saying each investor in its wealth management product could expect to receive 8,000 yuan ($1,257) per month as principal payment for three months irrespective of when the investment matures.

Additionally, the firm is also instructed by China government to abolish 39 illegal residential buildings.

AUD/USD 4 Hour Chart:

Support: 0.7243 (S1), 0.7225 (S2), 0.7208 (S3).

Resistance: 0.7277 (R1), 0.7294 (R2), 0.7311 (R3).

Negative headlines from Australia and china weighs on the Aussie. We expect a bearish trend for AUD/USD.