It was a relatively quiet day on the Asian economic calendar this morning, with economic data limited to Business PMI numbers out of New Zealand.
Updates from China and the rest of the world on COVID-19 cases and the number of deaths also influenced early in the day. Numbers were on the rise as health authorities in the UK scrambled to avert a spread. The Chinese yuan nursed losses in offshore trade as the flu-like virus, which emerged late last year in China's Hubei province, slammed the brakes on consumer spending and manufacturing.
USD/IDR stays first around 13,710 during the Asian session. The corona-virus risk offered the latest upside push to the pair while talks of the trade deal between Indonesia and Australia failed to please the sellers. Also, favoring the pair’s strength is political noise at home as the government has denied taking back ex-IS military officials into the nation.
The Japanese yen held onto gains against the dollar as renewed worries about the corona-virus outbreak supported demand for safe-haven currencies and weighed on prices of riskier assets.
The euro languished at multi-year lows fell 0.1% to $1.0827, the lowest since April 2017, as investors braced for the release of GDP data from Germany and the euro zone later on Friday versus the dollar and the Swiss franc as investors grow more pessimistic about the outlook in the euro zone.
Sentiment for the euro worsened after data earlier this weak showing a plunge in euro zone manufacturing output reinforced expectations that monetary policy will remain accommodative.
The pound rode a wave of optimism into Asia due to hopes that a British cabinet reshuffle will lead to more expansionary fiscal policy to support growth.The pound was little changed at $1.3046 following a 0.64% gain on Thursday due to expectations that British Prime Minister Boris Johnson's appointment of a new finance minister will lead to more fiscal spending to help Britain weather its transition away from the European Union.
Comments