CORONA-VIRUS & CENTRAL BANKS
The new corona-virus appears to now be spreading much more rapidly outside China than within, and airports in hard-hit countries were ramping up screening of travelers. World Health Organization (WHO) chief said almost eight times as many cases had been reported outside China as inside in the previous 24 hours, adding that the risk of corona-virus spreading was now very high at a global level. Traders are tuned in, listening out for comments from central bankers in the lead into the various interest rate meetings coming up this month. We have the Reserve Bank of Australia today ahead of the G7 finance ministers and central bankers who attending a teleconference on Tuesday to discuss their policy response to the economic fallout from the corona-virus. The G7 call is going to be led by Mnuchin and the Fed chair and there’s going to be a communiqué afterwards.
Global shares and oil prices extended their rebound on Tuesday on mounting speculation policymakers around the world would move to ease the economic fallout from the spreading corona-virus.
FOREX
The euro held steady just under its highest in two months against the dollar on Tuesday, on expectations that corona-virus-driven monetary easing in the United States can and will run deeper than any similar action in Europe. The euro climbed as high as $1.1185 overnight, its highest since early January while the dollar sank to a six-week low against a basket of currencies.
USD/JPY is trading at 108.34 between a low of 108.20 and a high of 108.53 in Tokyo with the safe-haven yen under-performing following an impressive buying spree on Wall Street. USD/JPY ranging between 107.40 and 108.60.
The People's Bank of China has set the Yuan reference rate at 6.9516 versus Monday's fix at 6.9811.
NZD/USD reverses lower from the 5-day average resistance.The pair faced rejection at the descending 5-day average at 0.6271 about two hours ago and is currently trading near 0.6250, representing a 0.14% drop on the day.
USD/IDR takes the bids to 14,218, +1.08%, during the early Tuesday’s trading session. In doing so, the pair defies its pullback from the highest since April 2019 while staying above 100-day and 200-day SMA levels.
As indicated earlier, despite being in the red for most of the last seven days, Bitcoin was likely to take support from the 150-day moving average, and that is what we witnessed today as the leading digital currency roughly surged from $8,400 to $8,900.
COMMODITIES
Oil extending its biggest daily gain of 2020 as traders hope for OPEC cuts this week.The price of oil remains technically bullish with bullish divergence playing out, en-roue to the 2020's ranges point of control.
Gold prices mark 0.46% gains while taking the bids to $1,593 amid the Asian session on Tuesday. The risk-tone remains light amid expectations of the global consolidated action to counter corona-virus.
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