The market is still trying to grapple with coronavirus fears this week
The dollar is keeping more steady as major currencies are trading little changed to start the European morning session.
Markets in general are maintaining a calmer mood after the risk rebound yesterday with US futures near flat levels, a similar sentiment seen in the bond market as well.
The aussie and kiwi remain the main worries as they fail to take much heart in the risk recovery overnight with AUD/USD still flirting with a potential drop below 0.6700 - barrier option noted at the figure level, so just be wary as that could run some stops.
I'm not sure how much markets can really take heart in the overnight development since the Chinese economy will still not be running at full capacity even as they are scheduled to resume operations next week.
I mean a lot of businesses will still be shut due to extra precaution and that will just continue to eat away at economic sentiment once we get post-virus outbreak data. In that sense, don't be deceived by the PMI data from earlier today whatsoever.
In any case, looking ahead today, it's still all about the risk mood as we look towards the weekend. I would still favour erring on the side of caution in the midst of all of this and preferably with the aussie currency.
But with AUD/USD running its course already near 0.6700, only a break below that will favour a better risk-reward trade for any further downside move.
