The AUDUSD opens at 0.5790 and the NZDUSD opens at 0.5678 this morning.
Financial markets ended a very volatile week last Friday on the globally spreading Covid-19, especially the soaring numbers in Europe. The world’s confirmed cases have just ticked above 340,000 with 14,500 deaths. Italy remains the epicentre having added additional 651 new deaths overnight and nearly 60,000 total cases.
Currency markets are in for another volatile week as the world tries to grapple with the spread of the Covid-19 Virus. Governments and Central Banks are moving quickly to provide economic support packages to help stabilise economies. Over the weekend, Australia announced a AUD 66 Billion package that included loans of up to AUD 100,000 to support small businesses. In the UK, the Government said it would underwrite 80% of the wages of all workers for the next three months. Germany announced a series of measures totalling EUR 750 Billion and the US are close to finalising a package of measures that could total up to USD 2 Trillion dollars.
The market will have to balance these measures against the very real human cost of the virus.
The good news is that the likes of China, South Korea and Japan look to have the virus under control and we are monitoring the growth in cases worldwide for signs that the lockdown measures being taken are starting to have an impact.
In terms of the currencies we expect more big swings and suggest people place market orders to try and minimise the market volatility.
Global equity markets were mixed, S&P 500 -4.34%, FTSE +0.76%, DAX +3.70%, CAC +5.01%, Nikkei -1.04%, Shanghai 1.61%.
Gold prices are at USD$1,498 an ounce. WTI Crude Oil prices at $23.40, off 8%.
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