AUD - Australian Dollar. The Australian dollar tracked sideways through trade on Monday, holding key supports at 0.7130 as Friday’s risk off push abated. Fears the omicron variant will erode the global growth outlook and envelop the world in another wave of COVID 19 infections escalated on Friday as the new mutant virus was marked a strain of concern. Having touched intraday lows at 0.7114 the AUD bounced as high as 0.7160 before settling marginally above key technical supports. Much is still unknown about this new variant, yet early reports out of South Africa seem to suggest that those infected have suffered only milder symptoms. Such reports are encouraging but it is still far to early to tell whether the omicron strain is more virulent, contagious, and resistant to the current crop of vaccines. Until more is known about this particular variant, we anticipate a heightened degree of volatility across financial markets and currencies as investors take bets on the expected impacted on the broader global economy. Having held above the August low at 0.7106 the AUD appears well supported for now, however a definitive risk off move on the heals of a worst case Covid scenario could see the AUD test new lows and open up an extension in the November depreciation.