Market Update:
Second Wave of Corona Pandemic In Asia? USD Rising, CNY, AUD & NZD Slumps

Image source: rawpixel
(15 June 2020) This week the market is seeing signs of risk aversion sentiment, with the reoccurrence of Coronavirus in China causing concerns for its commodity-linked peers (AUD, NZD, CNY). On the other hand, this gives anti-risk currencies such as JPY and USD chances of resurgence.
The U.S. is seeing a clash between rising Coronavirus cases and reopening the states for economic restore. New Coronavirus cases are spiking in more states, including Florida and Texas as more and more state officials pushing for reopening of the lockdown to restore their economy.
May’s unemployment record dropped slightly, signalling positive signs of recovering after the lockdown; while the Fed Chairman warns states to be cautious on these short term positive signs.
GBP  is dropping after the British is not extending their trade talks with the EU beyond the end of this year (where the Brexit transition period ends).
Beijing recorded new cases of novel coronavirus last weekend, all linked to a major wholesale food market which is one of the largest food markets in Asia. CNY could drop slightly due to concerns over new waves of the pandemic; but their industrial and retail sales data are on the rise.
Despite market’s appetite for anti-risk currency at the moment, the Japanese Yen is quite stable at the moment while investors are waiting for Bank of Japan’s announcement on Tuesday whether to increase stimulus or leave things unchanged.
Australian and New Zealand had seen some rises last week as global volatility was reduced. However, this week the market is predicting weak signs of growth out of China – Australia’s largest trading partner – may undercut AUD strength and accelerate AUD selloff.
USD Dollar Index (DXY) rises to 97.29 from last week’s lowest of 95.72
USD/CNY rose to 7.0958 from last week’s lowest of 7.0551
USD/JPY dropped to 107.214 from last week’s height of 109.691
EUR/USD dropped to 1.12357 from last week’s height of 1.14225
AUD/USD dropped to 0.67827 from last week’s height of 0.70643
NZD/USD dropped to 0.63907 from last week’s height of 0.65274
GBP/USD dropped to 1.24576 from last week’s height of 1.28135
Data from Tradingview.com