Leading commodity currencies AUD and NZD are registering highs against the US dollar on Friday as markets turn increasingly hopeful that the Omicron variant would not threaten the progress the global economy has made in recovering from the pandemic driven downturn. At the time of writing, AUD/USD is trading at around $0.722.

During the previous session, the currency pair had touched the highest levels seen since five weeks, although since then, it has eased lower on profit taking. So far this week, AUD/USD has strengthened by as much as 1.5%, rebounding after touching a 13 month low in recent sessions.

Even as several parts of Europe bring back lockdowns and restrictions during the holiday season to contain the spread of infections, several states in Australia have asked their residents to wear masks in public and observe social distancing. State governments down under have assured their citizens that they do not plan on imposing lockdowns again, thanks to the widespread rollout of COVID-19 vaccine across the country.

Meanwhile, NZD/USD is also trading close to the highest levels seen in three weeks after having gained 1.3% so far this week. Both currencies have been making moves upward on the back of a return in risk appetite among investors as experts state that the Omicron variant may not have as severe an impact as the previous Delta strain of COVID-19.

Looking ahead, the AUD/USD could experience some volatility around the second half of January on the release of employment and inflation data. On the other hand, a key upcoming fundamental driver of price action in NZD/USD will be the RBNZ meeting towards the end of February where the central bank could announce one more rate hike.