Australia’s Prime Minister Scott Morrison acknowledged on Monday, the highly-contagious Omicron coronavirus variant is having an impact on the country’s workforce and consumer spending.

Key quotes

"As the case numbers continue to rise, the volume of cases will of course have an inevitable impact on the workforce.”

"This is an incredibly tough time on business. There aren't lockdowns but there are many people obviously impacted by being close contacts or people being wary, or those indeed who have COVID themselves."

It was having a "predictable and understandable" impact on consumer spending.”

The country’s Assistant Treasurer Michael Sukkar, however, “is confident the Australian economy can overcome the Omicron challenge with households having the security of huge savings.”

Market reaction

The rebound in AUD/USD remains capped below 0.7200 amid covid and China’s real estate sector concerns.

The spot was last seen trading at 0.7190, adding 0.20% on the day, having hit a daily high of 0.7198 and a low of 0.7171.