“We are preparing to issue a notice of intent to determine whether to activate the domestic gas security mechanism,” said Australian Resource Minister Madeleine King.
In this regard, Reuters mentioned that Australia’s competition watchdog urged the federal government on Monday to consider curbing gas exports, warning its east coast could face a major shortfall next year which would pose a substantial risk to the country’s energy security.
On the same line, Goldman Sachs expects a 25% chance of a recession in Australia over the next 12 months.
The news should exert downside pressure on AUD/USD prices. However, softer US dollar and the market’s cautious mood ahead of Tuesday’s RBA, as well as Friday’s US NFP also seem to favor AUD/USD prices.
Also read: AUD/USD retreats towards 0.6950 on softer China Caixin Manufacturing PMI, US data, RBA eyed