The Aussie dollar jumped in the Asian trading on Tuesday after the Reserve Bank of Australia’s surprise 25bps rate cut to cushion the economic blow from the virus spread. As a result, the market saw a slight recovery on global stocks in anticipation of additional measures from the governments and central bankers to counter coronavirus. RBA’s rate cut seems like confirmatory rhetoric from Japan PM Abe’s call to keep the hope of G7 support alive.
Coronavirus keeps spreading outside China at a faster rate. The outbreak took four lives in the US already. Numbers of fatalities in Iran and South Korea are also bothering the markets. With this, the G7 financial leaders will be joining a conference call at 1200 GMT today, with the economic fallout from pandemic coronavirus as the key agenda. This will be led by Fed Chairman Powell and investors will keep updated on the discussions for immediate direction.
On the data front, the focus will remain on the Eurozone CPI, UK Construction PMI, EU-UK post-Brexit trade talks and agreements, and the NZD GDT’s Price Index.
NOTE: Traders are advised to be cautious and be updated on the major economic news causing high volatility to achieve better trading results.
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