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Jon Steeler



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This depends on a few factors. Firstly we need to assess the current market risks, with number one being the coronavirus that has been spread from China. If this continues to escalate and affect the Chinese economy then we can be sure that the Aussie dollar will be affected also.

Secondly, we have today just seen another potential risk off scenario with a downing of what seems to be a US air force plane. If the US reacts reacts then we will see a risk off scenario once more. 

However, in my opinion I feel like the coronavirus panic may slowdown slightly here. There hasn't been any major escalations at the start of the week and they also seem to be looking at different treatments to cure the virus. So I am cautiously turning risk on (I would buy the AUD in a risk on environment) although, I won't be opening any risk positions just yet. 

In regard to the US plane, I don't believe Donald will react, he won't want to escalate the situation into a possible war and go against his previous election pledges. So again, this would take more risk off the table.

So, right now I think we may see a slight bit of strength come into the AUD, for now.

If I do see any escalations in risk though, you can be sure I will be buying into safe havens...besides, the markets can change in an instant!

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