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A round of horrific official Chinese PMIs.....>

FOREX
FOREX: A round of horrific official Chinese PMIs from over the weekend has
flicked the risk switch to off at the start to the week. The closely watched
manufacturing registered at a record-low, well shy of expectations, as the
coronavirus epidemic bites. A broad-based flight to safety has allowed USD/JPY
to plumb a new YtD trough at Y107.01.
- High-beta FX lost ground, with the Antipodeans leading losses in the G10
basket. Australia reported its first fatality from Covid-19 and a number of
desks aggressively boosted their RBA & RBNZ easing bets, with IBs now pricing a
~27% chance of a 50bp cut from the RBA tomorrow. NZD/USD fell to its worst level
since Aug 2015 & AUD/USD hovers above its 11-year low touched Friday.
- USD/CNH opened higher but still shy of the CNH7.0 mark. The rate has slightly
eased off since, but remains in the green.
- USD/ZAR showed above Friday's multi-year high & sees its 50-DMA heading
towards the 100- & 200-DMAs. USD/MXN tested the MXN20.00 level to the topside as
U.S. Pres Trump said he will consider tightening controls on the Mexican border
after Mexico declared its first coronavirus case. 

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