Let’s check the situation in the market. Global coronavirus worries and job data hold dollar firm. The greenback finds decade-high vs. Australian dollar. The dollar is multi-month high against the kiwi.
As the virus death toll rises, the yen is firm.
As China returns to work, investors weigh economic damage.
The job market data provided the latest signs of the United States’ strength. Thus, the dollar held gains on Monday. Worries about the coronavirus epidemic are keeping other trade-exposed currencies subdued.
Over the weekend, the death toll from the coronavirus outbreak rose again. It passed the total kills by the SARS epidemic. In mainland China, the death indicator is showing 908 kills. Whereas, there are a total of 40,171 infected people.
Thus, the left trade-exposed currencies are on the back foot. Against other major currencies, the dollar is at milestone highs. Meanwhile, safe-haven currencies are trading firmly, for example, yen.
Dollar and Others
In early trade, the Australian dollar touched a fresh decade-low of $0.6657. It last stood at $0.6680. The Kiwi touched a two-month low against the dollar at $0.6397.
On Friday, the dollar hit against the euro the four-month high of $1.0948. Today is just below it at $1.0940. Since November the pound was parked near its lowest at $1.2890.
Rodrigo Catril is a senior FX strategist at National Australia Bank in Sydney. He said that an overriding theme of New Zealand dollar strength against a backdrop where the data is continuing to suggest that the United States economy is faring better compare to others.
Catril added that flows in the buoyant United States stock market further supported the currency.
He said that they have to wait until more clarity comes about the coronavirus. Its full impact on economic activity remains unknown. Thus, it is difficult to see the greenback coming under many competitions and challenges.
These are the leading news for today.
- Trading Instrument