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JGB TECHS

(U1) Tilted Higher

AUSSIE 10-YEAR TECHS

(U1) Uptrend Weakening

US TSYS SUMMARY

Bullard Kickstarts Reflation Unwind Theme

AUDUSD TECHS

Fresh 2021 Lows

FOREX
FOREX: The ever-spreading Wuhan coronavirus sent a risk-off impulse through the
FX space, as new deaths & infections were recorded in China. The government
deployed a mix of measures to address the crisis& extended Lunar New Year
holidays until Feb 2. While onshore trading remains closed for LNY, USD/CNH
defied the formation of a 50-/200-DMA "death cross" and surged past the CNH6.95
mark, albeit failed to make headway beyond the Jan 6 high of CNH6.9777.
- Safe havens were well bid. JPY led gains in the G10 basket, with USD/JPY
gapping lower at the open & testing the water under Y109.00. Antipodean FX sold
off on a flight to safety. Australia confirmed that a fifth person in the
country contracted coronavirus, as reported earlier by the local press.
- Selling pressure hit Asian EMFX, with BI stepping in to curb IDR weakness.
- Highlighted risk-off moves played out as liquidity was dented by market
holidays in China, Australia, South Korea, Hong Kong, Singapore, Taiwan and
Malaysia & a regional holiday in Auckland, New Zealand.
- German Ifo Survey and U.S. new home sales take focus from here. ECB's Mersch
is the only central bank speaker of note today.
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com