ForexLive Asia FX news wrap: Tentative business restart in China

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Monday 10 February 2020  

The opening moves early on Monday were once again fear-related, coronavirus headlines from the weekend weighed somewhat on 'risk' early. I say somewhat because although the reopening of futures markets in overnight tread in the US saw lower oil, lower stock indices and higher gold, currency moves were muted. AUD and NZD held fairly steady, while USD/JPY was just a few points lower. 

As on offset we also got news over the weekend of more market stabilising actions to come from the PBOC (see bullets above). Morning in China brought reopening of at least some business activity. It was subdued, and as the session progressed there were more announcements of production halts from South Korea on parts supply disruption (Kia Motors). So, a mixed bag of news, but in not being one-way negative it provided a little relief.

As I update US equity futures have managed a bounce back, gold has slipped way back from its earlier high while AUD (and to a lesser extent NZD) have traded up.

Oil remains heavy. 

On the coronavirus, the reported growth in cases has stabilised the past few days to a fairly steady pace - although a caveat to this is it may reflect limits to China's testing capability with reports of a shortage of testing kits/facilities. Although other explanations have been offered. 

Forex news for Asia trading Monday 10 February 2020  

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