Market Review 03-02

Australian dollar on back foot as China markets stumble on virus scare

The Australian dollar fetched $0.66925, up slightly on the day but was precariously close to its 10-1/2-year low of $0.6670 touched last October.

The currency is often regarded as a proxy to the yuan, being more freely traded and because of Australia’s reliance on trade with China.

https://www.cnbc.com/2020/02/03/forex-markets-chinese-yuan-australian-dollar-china-markets-in-focus.html

Coronavirus devastates Chinese markets, Boris pressures the pound, US data eyed

Coronavirus market response: Chinese markets have reopened after the New Year’s holiday with a sharp downfall, carrying down prices of metals. The People’s Bank of China cut interest rates on reverse repos and took other measures to stabilize markets. US stock futures are pointing to recovery after a sharp selloff on Friday.

USD/JPY has stabilized around 108.50. Gold is trading around $1,580, off the highs. The US dollar is generally stable on Monday after a significant drop on Friday.

Brexit: Prime Minister Boris Johnson is set to present his vision for future EU-UK relations after Britain officially left on Friday. He will reportedly propose “walking away” from talks if they fail to work according to plan. Johnson aims for a Canada-style trade agreement. GBP/USD is on the back foot.

The US ISM Manufacturing PMI is forecast to recover in January from the low of 47.2 recorded in December. The industry is struggling while the services sector, which is growing at a rapid clip. The figure serves as the first hint toward the Non-Farm Payrolls on Friday.

https://www.fxstreet.com/news/forex-today-coronavirus-devastates-chinese-markets-boris-pressures-the-pound-us-data-eyed-202002030622

According to Trading Central (3rd party RIA) the AUDUSD could be heading DOWN to 0.6500 if it does not go ABOVE 0.6820

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10600439

GBP/USD falls as no trade deal Brexit fears rise

GBP/USD is trading around 1.3150, down. UK PM Johnson will reportedly adopt a tough line in talks with the EU about a future trade deal post-Brexit. Final Manufacturing PMI is also eyed.

https://www.fxstreet.com/currencies/gbpusd

According to Trading Central (3rd party RIA) the GBPUSD could be heading DOWN to 1.2760 if it does not go ABOVE 1.3275

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10600436