Listen to the latest market mood for the coming session:
Today has brought a pleasant surprise with Asian equities as well as European and US stock futures in the green. The announcement from Wuhan that they will end its 10-week lockdown on April 8 has lifted sentiment. However, please bear in mind that this positive risk sentiment may only be very short-lived and the market remains hypersensitive to negative coronavirus headlines.
Keep an eye on the latest coronavirus updates to measure risk. The mood at the moment is for the risk-on flows to continue.
- Risk-on flows = AUD, NZD, CAD, equity buying and JPY, CHF selling
- Expect buyers on AUDJPY from pullbacks as long as this risk-on tone remains.
- Trade Risks: the main risk to this outlook remains to be any negative coronavirus news which would send the market back into a risk-off mood and invalidate this outlook.