Collinsonfx Daily Market Commentary

Markets shrugged off the threat of the 'Coronavirus', despite cases rising to 75,000 and deaths over 2,000, as markets perceive that the Chinese have it under control. The focus is now on the impact the virus is having on business and the economy. The Chinese have launched into business bailouts and cash injections and providing stimulus from the PBOC, in terms of monetary policy. The S&P and NASDAQ both hit record highs, appearing satisfied with the coronavirus crises and supported by a 9.2% rise in Building Permits. The Dollar continued to provide a safe haven alternative, in addition to attractive interest rate differentials, reflected in the Yen trading 111.10.

The EUR slipped below 108.00, while the GBP attempted to hold above 1.2900, supported by stronger than expected CPI inflation data. The rising reserve has pushed the AUD back to 0.6670, testing key technical support levels, while the NZD fell back to 0.6370.

The release of the Fed Minutes may give key insights into the Feds thoughts on the economy and the Central Banks views on action or reaction. Australian Employment data will be key to local market activity.