Risk appetite took a dive overnight with equity markets down and safe haven assets finding support as the number of coronavirus cases outside of China continued to climb rapidly. The Swiss Franc and Japanese Yen have been the best performing major currencies, while the Kiwi Dollar has held up reasonably well and opens at similar levels to yesterday. The Australian Dollar hasn’t feared so well, dipping back below the US 66 cent level.
The Day Ahead
Markets will again be dominated by coronavirus developments. On the data front we have US non-farm payrolls tomorrow morning NZ time, where a solid number is expected, although much of the result will be from prior to coronavirus arriving in the U.S. Also of interest today will be comments from several US Federal Reserve officials on the back of the 50 bps rate cut earlier in the week.
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