Analysts at TD Securities offer a brief preview of the German ZEW Survey lined for released later on Tuesday at 1000 GMT. Key Quotes: “February's German ZEW survey offers one of the first glimpses of the impact of the Coronavirus on markets and the economy. We are roughly in line with the consensus for this month's release, with a decline in the Expectations component to 22 (mkt: 21.5), and a decline in the Current Situation to -11 (mkt: -10).”

AUD/USD came under some selling pressure on dovish RBA meeting minutes. Softer risk sentiment benefitted the USD and exerted some additional pressure. The AUD/USD pair now seems to have entered a bearish consolidation phase and was seen oscillating in a narrow band near session lows, just below the 0.6700 round-figure mark. The pair came under some fresh selling pressure on Tuesday and finally broke down of its two-day-old trading range in reaction to the dovish sounding RBA monetary policy meeting minutes, which revealed policymakers’ easing bias. The risk-off mood adds to RBA-led weakness This coupled with persistent worries about the economic impact of coronavirus outbreak in China – despite the PBoC's latest stimulus measures on Monday – exerted some additional downward pressure on the China-proxy aussie. Adding to this, a turnaround in the global risk sentiment, triggered by Apple's warning that it will be unable to meet its March quarter guidance, further collabor..

UK Jobs report overview The UK labor market report is expected to show that the average weekly earnings, including bonuses, in the three months to December, are expected to rise by 3.0%, while ex-bonuses, the wages are also seen rising by 3.3% in the reported period. The number of people seeking jobless benefits is likely to increase by 22.6k in January vs. +14.9k seen last. The ILO unemployment rate is expected to remain unchanged at 3.8% during the period. How could they affect GBP/USD? Haresh Menghani, Analyst at FXStreet explains, “the pair now seems vulnerable to accelerate the fall further towards the 1.2950-45 support zone en-route 100-day SMA, around the 1.2925 region. Failure to defend the mentioned support now seems to prompt some aggressive technical selling and pave the way for the resumption of the pair’s prior depreciating move. On the flip side, the 1.3040-50 region now seems to act as immediate resistance and is closely followed by the 1.3065 supply zone (50-DMA). A..

EUR/USD remains offered near 1.0830 ahead of key data. Coronavirus, USD-strength keep weighing on the pair. German/EMU ZEW survey next of relevance in the docket. The demand for the single currency remains depressed for yet another week, with EUR/USD just managing to navigate above earlier YTD lows in the proximity of 1.0820, levels last visited in April 2017. EUR/USD now looks to data The persistent buying interest around the greenback and unabated concerns – albeit somewhat alleviated – surrounding the Chinese COVID-19 continue to hurt the sentiment around the European currency and maintain EUR/USD under permanent downside pressure. In fact, occasional bullish attempts in EUR/USD remain contained around the 1.0850 region so far, as investors keep the preference for the greenback in the current context of exchanging risk appetite trends and in response to recent positive results from some US fundamentals (vs. poor readins from the European docket). Moving forward, the euro will..

Citing sources familiar with the Bank of Japan (BOJ) thinking, Reuters reports the Japanese central bank may be compelled to dial back its commitment to achieving the 2% price target amid coronavirus-induced rising economic costs and dwindling domestic consumption. Key Quotes: “After years of trying to vanquish deflation by setting an ambitious price goal, Japan’s waning recovery prospects and a dwindling policy tool-kit have made the BOJ more open to conceding that the best it can do is to keep the economy afloat. While the inflation target remains very important, the focus of the BOJ’s policy has shifted toward keeping the economy on a sustainable recovery path.” USD/JPY off lows, still in the red below 110.00 mark Moody’s: Lowered our China growth forecast to 5.2% for 2020 vs. 5.8% previous

USD/JPY extended the previous session’s rejection from 110.00 round-figure mark. Reviving safe-haven demand benefitted the JPY and exerted some fresh pressure. The downside remains limited and thus, warrants some caution for bearish traders. The USD/JPY pair edged lower on Tuesday and dropped to three-day lows during the Asian session, albeit has managed to recover few pips thereafter. Following the previous session's failed attempt to reclaim the key 110.00 psychological mark, the pair came under some fresh selling pressure on Tuesday amid a turnaround in the global risk sentiment. USD/JPY weighed by reviving safe-haven demand Worries over the economic impact of the deadly coronavirus outbreak resurfaced on Tuesday after Apple warned that it will be unable to meet its March quarter guidance due to iPhone production issues. The warning from the most valuable company in the US dampened the recent optimism led by the PBoC’s stimulus measures and provided a modest boost to the..

In its latest economic assessment report of the Asia Pacific economies, Moody’s Investors Service downgraded China’s 2020 GDP forecast, in the face of the coronavirus impact. Key Points: Growth to slow across Asia Pacific as coronavirus weakens demand and disrupts supply chains. Lowered our China growth forecast to 5.2% for 2020 from 5.8% previously, reflecting a severe but short-lived economic impact. Lower Chinese import demand is the primary reason for slowing growth. Intra-regional trade amplifies the impact of lower Chinese growth. Forex Today: Coronavirus takes a bite from the apple, Gold gains, Bitcoin bounces Gold bulls eye critical resistance after coronavirus hits Apple – Confluence Detector

According to the latest Reuters poll of economists, Bank Indonesia (BI), the Indonesian central bank is expected to cut the benchmark interest rate at its policy review meeting this Thursday, resuming its easing cycle to cushion the negative economic impact of the coronavirus outbreak. Key Findings: “Sixteen of 28 economists in the survey expected BI to cut the benchmark 7-day reverse repurchase rate by 25 basis points (bps) to 4.75% at a two-day policy meeting that ends on Thursday. The other 12 predict BI will hold the rate at 5.00%. Advocates for leaving rates unchanged believe uncertainties caused by the coronavirus were a reason not to cut rates. Chief Economics Minister Airlangga Hartarto forecast an up to 0.3 percentage point reduction in Indonesia’s GDP growth this year if China’s growth lost between 1 to 2 percentage points.” USD/IDR rebounds from a three-day low of 13,652 and looks to regain the 13,700 level, at the time of writing.

UOB Group’s Senior Economist Alvin Liew and Senior FX Strategist Peter Chia reviewed the recently published GDP figures in the Japanese economy and the prospects of extra stimulus by the Bank of Japan. Key Quotes “Japan’s 4Q 2019 GDP growth contracted by 1.6% q/q (6.3% annualized rate) as the October sales tax and bad weather extracted its toll on private consumption and business spending, offsetting the positive contributions from public demand, net exports and private inventories.” “We had maintained a cautious stance on Japan’s growth outlook as we see Japan facing significant challenges in 2020. Based on our expectations that the collapse of private spending could extend well into 2020, together with the lingering trade headwinds, and the latest threat of the novel coronavirus (COVID-19), we believe that there is a high possibility that Japan will enter into a recession and we continue to project Japan’s GDP will contract by 0.8% in 2020.” “We have held the view that the contin..

According to the analysts at Australia and New Zealand Banking Group (ANZ), the Reserve Bank of Australia (RBA) minutes revealed that the central bank remains open to further easing if needed. Key Quotes: “The minutes do not specifically refer to the need for the economy to deteriorate before the RBA will consider another rate cut. They suggest an open approach to lack of progress toward the Bank’s target is still a possible trigger for a move lower. But we are careful about overplaying this as Governor Lowe has been clear about what economic developments would be needed to get the Bank back to easing. In his speech on 5 February, the Governor of RBA concluded that − given the cost of low interest rates − things would have to get worse for the RBA to ease again. In contrast the minutes from the RBA’s February meeting do not make any reference to higher unemployment or lower inflation being necessary for another rate cut.”