The Chinese yuan is in a rough spot amid coronavirus fears

USD/CNH D1 27-01

The offshore yuan is the weakest performing Asian currency today as coronavirus fears continue to grip markets and cast a negative risk mood across all asset classes today.

EM is also suffering with the Thai baht and Singaporean dollar among the weaker performers due to their large exposure to tourism and the services sector respectively.

But as is the case with the yuan, the fall in the currency also bodes ill for the likes of the aussie and kiwi - which are weighed down heavily in trading today.

USD/CNH now closes in on the pivotal 7.00 level and a breach of that level may ring more alarm bells for risk assets in the sessions ahead. As such, keep an eye on the chart above.

In the bigger picture of things, it is hard for the US to try and allude to China manipulating its currency (going against the Phase One deal) when there is such a situation taking place - with the scale and severity still in the midst of being ascertained.