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Coronavirus Concerns Weigh

FOREX

Antipodean pairs coming under pressure in early trade as coronavirus concerns once again dominate headline flow. The weekend saw the scope of Sydney's lockdown broadened to cover the entire Sydney area, with the length of the lockdown increased to 2 weeks. AUD/USD down 3 pips last.

  • In New Zealand Covid-19 Min Hipkins said existing rules will remain in place at least through Tuesday, even as officials have not found any new cases in the community. In addition, the pause on quarantine-free travel to NSW was extended by 12 days. NZD/USD down 4 pips.
  • USD/JPY is up around 4 pips, Japan's Covid-19 response czar Nishimura signalled that the central gov't stands ready to declare a fresh state of emergency amid a deteriorating virus situation in Tokyo.
  • Offshore yuan is slightly stronger, data over the weekend showed ndustrial profits data for May rose 36.4% Y/Y compared to 57% previously.
  • GBP is slightly stronger, there were reports in The Times that new health secretary Sajid Javid is expected to say he is confident that the easing of lockdown restrictions will go ahead on July 19 and that Britain will return to normal. The Times also reports that Germany will attempt today to ban British travellers from the EU regardless of whether or not they have had a vaccine.

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