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The US Dollar mayfind some strength if tensions between the US and China keep rising, adding an extra layer of uncertainty to the global economic outlook amid the coronavirus outbreak.

The Australian Dollar market is headed for a bare domestic data cupboard which will once again leave overall market risk appetite in charge. This may well mean it remains stuck in its current range.

US-China tensions in focus as risk appetite weakens. Chinese Yuan key to currency volatility.

Gold is making a fresh attempt to move higher as the outlook for riskier assets turns negative.

Bank of England deputy governor Dave Ramsden, speaking to Reuters, said that while the fall in UK Q2 GDP may not be as bad as first thought, the recover may take longer than previously expected.

Euro traders will be closely watching the release of the ECB meeting minutes amid tension with the German high court. GBP is feeling the pain of Brexit as transition extension deadlines nears.

Crude oil prices made initial gains on reports that lockdown rollbacks had indeed increased demand. However Hong Kong stocks’ plunge on proposed tighter control from Beijing saw those gains pared.

The price of gold may consolidate over the remainder of the month as the Relative Strength Index (RSI) appears to have flopped ahead of overbought territory.

The US Dollar rebounds while the S&P 500 Index gives back gains as market sentiment shows signs of deteriorating due to a re-escalation in trade uncertainty and tension with China.

The Australian Dollar struggled at resistance after US-China tensions sent the Dow Jones and S&P 500 lower over the past 24 hours. This also benefited the haven-linked US Dollar.