Markets continued to suffer the fallout of the 'coronavirus', as the spread marches on. Chinese authorities look to be in control, but the impact of the virus on the Chinese and Global economy, is impossible to calculate. Safe Haven flows continue, with US Bond Yields and Oil prices falling, while Gold prices and Vix are on the rise. US PMI data went negative and Existing Home Sales contracted, along with the mighty Dollar.
The EUR jumped back to 1.0850, supported by some positive PMI data, while the GBP recovered to 1.2970. The fall in the reserve currency will probably be temporary, as the interest rate differential remains to attractive. Economic data will begin to reflect the impact of the coronavirus on the Chinese and Global economies.
The trade exposed commodity currencies have blown through major support levels and look set to test record lows. The AUD fell below 0.6600, for the first time since the GFC, while the NZD bounced off 0.6300. The softer reserve allowed some recovery in these commodity currencies, but they remain extremely vulnerable, heading into the new week.
The coronavirus remains the biggest macro influence on markets, but local economic data will start to reveal the impact the crises on specific national economic data.
Weekly Market Calendar
24/2 NZ Retail Sales, NZ Credit Card Spending, German IFO Business Climate, Chicago Fed National Activity Index
25/2 Dallas Fed National Activity, Australia Consumer Confidence, EU GDP
26/2 Case Shiller Home Price Index, US Consumer Confidence, Richmond Fed Manufacturing, US Weekly Mortgage Applications
27/2 German Retail Sales, US New Home Sales, NZ Trade Exports/Imports, NZ Business Activity, EU Consumer Confidence, Durable Goods Orders, US GDP
28/2 US Pending Home Sales, Kansas City Fed Manufacturing, NZ Consumer Confidence, Japan CPI, Japan Industrial Production, France GDP, German Employment, EU CPI, German CPI, US Trade, US Personal Income/Spending, University of Michigan Sentiment, China Services/Manufacturing/Composite PMI