AUDUSD
A warning from Apple Inc. (AAPL) that it will not match the Q2 revenue forecasts due to supply disruption on iPhone and weaker demand from China. The death toll neared 1900 while there are over 72430 confirmed cases. Many entertainments and sports events have been cancelled in China to avoid travel that may spread the virus. The Asian stocks finished lower with Nikkei 225 giving up 1.40% at 23193. The Hang Seng Index is 1.45% lower at 27564 and the Shanghai Composite is 0.05% higher at 2984. The Singapore Straits times ended 0.43% lower at 3198.
Moody’s expect growth to slow across the Asia Pacific region as the coronavirus outbreak weakens demand and disrupts supply chains. Moody’s lowered the China growth forecast to 5.2% for 2020 from 5.8%, forecasting a severe but short-lived economic impact.
In our trading calendar, the ZEW Survey from Germany and Eurozone will be reported at 10:00GMT, and will be one of the first indicators on the impact of coronavirus in the economy. The U.K. employment figures are expected at 9:30GMT. In the American session we have the Canadian Manufacturing Sales due at 13:30GMT.
Read our Best Trading Ideas for 2020.
AUDUSD is under heavy selling pressure after the release of the Reserve Bank of Australia minutes suggesting that the RBA remains open to further easing if needed as the coronavirus spread will have a negative impact on the economy.
AUDUSD is 0.42% lower at 0.6685 approaching the recent lows as the bears are in full control of the trend.
Support for the AUD against USD will be met at 0.6682 the daily low, while a break below might test the February 7th low at 0.6662.
On the upside first resistance stands at 0.6715 the daily high. A break above will meet the next resistance at 0.6734 the high from yesterday’s trading session. In case of a break higher the next supply zone would be met at 0.6775 the high from February 5th.