Coronavirus fears had the Aussie seeing mostly red at the end of the week, despite some positive data from Australia.
Australian Headlines and Economic data
- Major global risk-off sentiment to start off the week after the mayor of Wuhan, epicenter of coronavirus outbreak, says 5 million people left the city before travel restrictions were imposed. This was likely the catalyst for the the weak opening in the Aussie, with exception against the Kiwi, which is usually considered the “risk asset” between the two.
- Risk aversion sentiment grows as China confirms 2,700 cases of virus, 40 counted elsewhere.
- Australia’s headline Q4 2019 CPI up from 0.5% to 0.7% vs. 0.6% forecast
- Australia’s trimmed mean CPI steady at 0.4% as expected
- Risk aversion behavior picked up quickly on the session and was likely what pushed the Aussie lower, once again on Coronavirus fears as there was nearly 1,500 new cases in a few days and the death toll rose to 132.
- Australia Import Price Index rose 0.7% this quarter and 1.4% through the year.
- Russia closes China border as outbreak tops 7,900 cases with 170 deaths
- Coronavirus declared global health emergency by WHO
- Australian producer prices up by 0.3% as expected in Q4 2019
- Australia’s private sector credit increased by another 0.2% as expected
- Risk aversion accelerates once again during the Friday session as the US raises travel warning, Singapore bans Chinese travelers as outbreak spreads. Also, the U.S. declares coronavirus a public health emergency.