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NZD Dips | Coronavirus Weighs on Market Sentiment

Published January 22, 2020

The Kiwi Dollar opens slightly lower today as further cases of coronavirus in China weighed on market risk appetite. The Chinese Yuan has tumbled while safe haven currencies such as the Japanese Yen have rallied. The Australian Dollar is weaker on the back of a falling CNY which has seen the NZD/AUD cross rate regain some ground.

German economic sentiment rose significantly to 26.7 in January, up from the last reading of 10.7 and beat the market expectation of 15.0. German President Achim Wambach stated that the continued solid rise of the economic indicator is mainly driven by the recent settlement of the trade dispute between the US and China.

US Treasury Secretary Mnuchin said that that the next phase of the China deal may not be a “big bang” that removes all existing tariffs. Mnuchin also warned that Italy and Britain will face US tariffs if they proceed with a tax on digital companies like Alphabet, Google, and Facebook.

The Pound was firmer after better than expected jobs data which saw the UK economy create jobs at its fastest rate in nearly a year.