The mood in the markets has improved slightly at the start of a brand new trading week as factories in China are set to reopen after being shut for an extended period of time over the coronavirus outbreak. AUD/USD gained as much as 0.5% in anticipation of resumption of normalcy in the Chinese markets and is now trading at around 0.669.

Leading companies such as Foxconn and Tesla are expected to resume production this week even as China reports a slowdown in the number of coronavirus cases for the first time since February 2. Positive headlines coming out of China for the first time in several days have also helped boost the Chinese Yuan as well as other Asian currencies in early trading on Monday.

Even though the Australian dollar enjoys a temporary rally, markets are still expecting a 40% likelihood of rate cut by the RBA by May. Analysts expect this slight improvement in confidence in markets to be momentary as most white collar workers in China are still being told to work from home instead of reporting to the offices.