Collinsonfx Daily Market Commentary

US Markets were closed for the Presidents Day holiday, which meant very quiet trading on global markets. Markets continue to closely monitor the 'coronavirus' crises, which is increasing daily, but appears to be under control. The PBOC (Central Bank) cut medium term loan rates (MLF) and telegraphed further stimulus, while the Government is implementing business tax cuts, to assist recovering companies. Some major companies within China are returning to work and along with some sense of normalcy.

Japanese GDP numbers were terrible, contracting 6.3% annually, although there was a slight upswing in Industrial Production (+1.2%). The Yen drifted to 109.90, while the GBP slipped back to 1.3010, after the recent spike coming after the replacement of the Chancellor.

The NZD was steady around 0.6430, while the AUD held 0.6715, the inaction due to the US long weekend and little local economic data releases. The release of the RBA minutes later today, may give some impactful insights in to the Australian economy and how the RBA interpret these, through monetary policy action.