Risk-off themes as China vows to stick with Covid-Zero strategy

Bloomberg has reported that the Australian dollar has slumped early Monday as traders sought haven assets after Chinese authorities vowed to stick to their strict Covid-zero stance. 

''The Aussie fell as much as 1.1% to 64.02 US cents with the Kiwi trailing close behind, to lead major currencies including the euro and pound lower. The greenback climbed against its Group-of-10 peers as traders sought haven assets.''

The US Dollar tumbled on Friday on a risk-on day on the news that China would relax such measures and after signs of a slowdown with a higher US Unemployment Rate and lower wage inflation. 

The Greenback initially rose immediately after the data, but fell as market participants digested the jobs report, noting the data was not all positive and supports the view the Federal Reserve could slow the pace of future rate hikes.

''An unverified social media post last week, and a report authorities were working on plans to scrap a system that penalizes airlines for bringing virus cases into the country, boosted investor hopes that China’s pandemic policy may soon be loosened,'' Bloomberg reported.