The AUDUSD opens at 0.6711 (mid-rate) and the NZDUSD opens at 0.6399 (mid-rate) this morning.
News that China are encouraging some of their larger companies to resume industrial production is having a positive effect on markets with risk appetite increasing over the past 24-hrs.
Although the number of confirmed cases continues to climb, as of this morning there are more 42,500 confirmed cases, China is reporting the daily rate of confirmed cases has fallen by 19% helping spark the increase in risk appetite.
This morning Federal Reserve Chairman Jerome Powell reiterated that there would be no imminent changes to monetary policy noting that uncertainties around trade have diminished following the signing of the phase one US-China trade deal. Powell described the US economy as resilient to global headwinds, with economic activity increasing at a moderate pace over the second half of last year. The Fed are also closely monitoring the coronavirus outbreak “which could lead to disruptions in China that spill over to the rest of the global economy," Powell said.
This afternoon, the Reserve Bank of New Zealand are widely expected to keep the OCR unchanged with investors interested in whether the accompanying statement will focus on recent improvements in our economic data or the near-term risks around the coronavirus outbreak.
Global equity markets have bounced back - Dow +0.10%, S&P 500 +0.38%, FTSE +0.71%, DAX +0.99%, CAC +0.65%, Nikkei Closed%, Shanghai +0.39%
Gold prices are marginally lower, down 0.7% trading at $1,565 an ounce. WTI Crude Oil prices have retraced yesterday’s fall and are currently up 1.8% at $50.44 a barrel.
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