The fears over the spread of coronavirus continue to weigh on the market. Despite other crucial market events such as the central banks’ decisions on their monetary policy, i nvestors are more interested in the news on the epidemic. Yesterday, the regular meeting of the Federal Open Market Committee took place. The Fed evaluated the recent mixed macroeconomic reports. The regulator decided to leave the interest rate unchanged and did not provide any hints on the future of monetary policy. Nevertheless, Fed Chairman Jerome Powell stressed the risks to the world economy due to the outbreak of coronavirus. In the meantime, the US dollar as a safe asset is holding near 2-month highs. The chart does not fall below the level of 98.00, demonstrating the potential for growth. Today, traders are awaiting the preliminary data on US GDP for the 4th quarter. Another safe-haven asset, the Japanese yen, is also extending gains amid risk aversion. Curiously enough, there were rumors that China’s economy may slow down to 5%. The dollar/yen pair is edging lower. It is likely to break out of the resistance level at 108.80 and then dip to 108.50. However, there is still no consensus among technical analysis experts on the further trajectory of the quote. This is why it is better to wait for more signals. The Australian dollar is sensitive to the news on China’s economy. It was undermined by the pessimistic news on the spread of the epidemic. As we forecast in our review yesterday, the AUD/USD pair dived below the resistance level at 0.6740. It may drop even deeper to the level of 0.6710. Since the beginning of the year, the Australian currency has already lost about 4% of its value amid fires, expectations of a rate cut by the RBA, and growing risks of a slowdown in China’s economy. That’s all for now. We wish you profitable deals! See you on our channel with a new video in
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