Conflicting sentiment surrounding coronavirus, risk assets on thin ice
|- Germany has reported three more cases of the coronavirus.
- Asia could be a bloodbath today, while AUD will be a particular focus.
In the latest updates with respect to the coronavirus news, we are now hearing that Germany has reported three more cases which are in addition to the number of known cases of the new virus rising by nearly 60% overnight. However, a shortage of test kits has led experts to warn that the real number may be higher.
Germany, Japan and Taiwan reported the first coronavirus patients who didn’t visit China and while markets have found some solace on the news that the "outbreak may reach its peak in one week or about 10 days: expert," reported by Xinhua and ore recently, duplicated by the People's Daily China, "The novel coronavirus outbreak may reach its peak in one week or around 10 days, and then there will be no large-scale increases, says Zhong Nanshan, a renowned Chinese respiratory expert," risk assets could be in for more abandoning by traders and investors on the next 'fear-mongering' report in the media.
Market implications
Today's Asia session could be a blood bath of risk-off should mounting coronavirus news impound trader's attention. There will b a particular focus on the Aussie considering today's Consumer Price Index, Q4(CPI), as well and AUD/USD latest run to the downside, extending territories to well below the channel support, now testing bullish commitments at 0.6750. "ANZ expects headline inflation to come in at 0.7% QoQ– a touch higher than market expectations of 0.6% QoQ." A discount towards 0.68 the figure could be on the offering on a positive surprise in the CPI.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.