Asian indices ended lower amid growing fears about the economic impact of the coronavirus outbreak. South Korea reported 52 new coronavirus cases. China has confirmed over 75,000 cases, with the death toll rising to 2,236. The central bank of China in a move to offset the coronavirus impact, cut the benchmark one-year prime rate by 10 bps, and the five-year prime rate by 5 bps.
Nikkei 225 closed down 0.39% at 23386 after the Japan Government warns on the effects of coronavirus outbreak. The Hang Seng Index is 1.05% lower at 27309 and the Shanghai Composite ended 0.31% higher at 3039. The Singapore Straits times ended 0.23% lower at 3191. Aussie shares retreated from an all-time high, ended 0.33% lower at 7139.
In our trading calendar, we have manufacturing and services figures from eurozone, France, Germany, and the U.K. In the U.S. we have the existing home sales and the IHS-Markit ‘flash’ purchasing managers indexes.
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AUDUSD Hits March 2009 Lows
AUDUSD continues lower for the sixth trading session in a row amid weak economic data and fears that the coronavirus crisis in will have a massive impact in the Aussie economy as China is the largest trading partner. Traders now bet that the RBA will move to cut the interest rates in the next policy meeting.
First support for the AUDUSD will be met at 0.6585 the daily low, while a break below might test the March 16th 2009 low at 0.6530.
On the other hand, first resistance for the AUDUSD stands at 0.6624 the daily high. A close above will meet the next resistance at 0.6694 the top from yesterday’s trading session. The next supply zone for the pair would be met at 0.6732 the high from February 17.
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