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RISKY CURRENCY TAKING BREATH


President Xi Jinping said "China was sure of defeating the "devil" corona-virus while international alarm was rising as the outbreak spread across the world."


As countries step up efforts to contain the spread of the deadly new virus, flight-to-quality bids in safe-haven currencies such as the yen and the Swiss franc subsided for now.

  • The Australian dollar fetched $0.6775 , steady on the day and a tad above from Tuesday's 3 1/2-month low of $0.6737. The chances of an RBA rate cut in February got dimmer following the release of a better-than-expected Australian inflation data for December.

  • The offshore yuan traded flat at 6.9550 yuan per dollar , off Monday's 6.9900 to the dollar, which was its weakest in almost a month.

  • The euro stood at $1.1016 , having hit a two-month low of $1.0998 in U.S. trade on Tuesday.

  • That helped to lift the dollar index to a two-month high.

  • The yen traded at 109.16 yen per dollar , off Monday's three-week high of 108.73. It posted its first loss in five days on Tuesday.

  • USD/CAD fails to extend the pullback from the key EMA, bounces off 38.2% Fibonacci retracement. A monthly rising trend line portrays the short-term recovery.

  • USD/CHF trades successfully above 21-day SMA, 23.6% Fibonacci retracement. Positive oscillators favor further upside, 0.9832/37 can stop buyers beyond 50-day SMA. 0.9600 will gain the bear’s attention below the monthly bottom.

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