Markets Gain Some Confidence as Some Factories in China Resume Operations - Forex News by FX Leaders
Markets Gain Some Confidence as Some Factories in China Resume Operations

Markets Gain Some Confidence as Some Factories in China Resume Operations

Posted Monday, February 10, 2020 by
Arslan Butt • 1 min read

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.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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