Forex news for Asia trading Wednesday 22 January 2020

China coronavirus news:


There was little news of note today ahead of the scheduled press conference from China on the coronavirus outbreak. Ahead of the presser the USD gained ground, higher almost across the board against the majors here with GBP the most resilient.

The news out of the press conference was of further cases and deaths reported and a containment effort taking place while seeking understanding of the virus and how it is spreading is a work in progress. Long story short, though, the key summary points were:

  • source of the new coronavirus infection has not been found
  • route of transmission is not yet fully understood
  • new coronavirus could mutate
  • the virus is at risk of spreading further
  • the infection of medical workers is confirmation of human-to-human transmission

Meanwhile further cases were reported from Thailand and also from areas in China away from the epicentre at Wuhan.

As the news conference progressed the USD lost some ground, giving points back it had gained against the AUD, EUR, NZD while USD/JPY and USD/CHF continued to move higher. Curious moves, not fitting 'risk off' mode.

AUD/JPY off its lows as the news conference progressed:

Forex news for Asia trading Wednesday 22 January 2020

Of note in the data today the 'green shoots' in Asia look to have continued with the South Korean Q4 GDP report showing the fastest growth q/q since 2017 (its ain't all roses, y/y growth was the slowest since 2009)