Markets have opened the week with a decidedly risk-off feel and Asian pairs are so far feeling the impact.

In early Asian trade the AUD/USD and NZD/USD are down sharply taking the lead from a soft close on Wall Street on Friday and some worries over the weekend.

For the most part, the theme is surrounding the coronavirus as word is that cases continue to spread and authorities are struggling to keep it contained.

The headlines in the mainstream media are likely enough to keep pressure on markets today, but at the same time, we also must assume that Wall Street traders wanted to take some risk off the table on Friday ahead of the weekend. So there is no doubt some follow-through there, particularly from equity markets.

There is also no doubt some segment of the market who are also worried about Bernie Sanders gaining momentum as the front-runner for the Democratic nomination. From a markets perspective, Trump is clearly favoured over most long-term politicians and given Sanders is strongly left, there are no doubt some in the US who would see that as a concern.

Levels

To start the week the Aussie is trading around the 0.6600 level and just holding its head above water. Price opened under that point but has rebounded back above so that is a sign that all is not lost for the bulls today. If the lows continue to hold throughout the session that will actually be quite bullish as we head into Europe.

This is clearly the level to watch at the moment for a further break as we have both negative fundamentals at the moment and news adding to the downside pressure.

The Kiwi is following a similar pattern here as well, opening lower and pushing back up. We also saw some softer than anticipated retail sales data which is no doubt a little bearish. But again it is the sentiment driving price action today.