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.

Ross J Burland FXStreet

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.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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