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Signs of peaking in the coronavirus outbreak worldwide and better than feared Chinese Trade data helped boost the sentiment in Asia this Tuesday. The risk friendly market environment dulled the attractiveness of the safe-havens – US dollar and gold.

With the US and some of the Asia-pacific countries mulling re-opening a part of their economies amid declining death toll, the Asian equities rallied with the US stock futures while Gold prices extended correction from a new seven-year peak of $1725.69.

Amid broad dollar weakness, EUR/USD extended gains above 1.0900 while the cable also remained strongly bid above 1.2550 despite expectations of lockdown extension in the UK. Meanwhile, USD/JPY traded on the defensive around 107.65 region. The commodity-currencies benefited the most amid the recent surge in gold, oil and copper prices. AUD/USD clocked a fresh five-week high near 0.6430 while the kiwi regained 0.6100. USD/CAD dropped below 1.3900 as oil prices rebounded, with WTI back above the 22 handle.

Main topics in Asia

UK’s Raab suggests UK lockdown could last at least another month – The Guardian

Saudi Energy Minister: effective global oil cuts above 19 million bpd – Reuters

US President Trump: Strategy to slow the coronavirus spread is working

Trump: We’re very close to completing a plan to open our country, hopefully even ahead of schedule

IMF to provide immediate debt service relief to 25 member countries

Texas oil and gas regulators to meet Tuesday morning to consider oil production limits

Reported COVID-19 cases around the world surpassed 2 million

China reports 89 new coronavirus cases in the mainland on April 13 vs 108 a day earlier

NZ FinMin Robertson: Talking with industries to allow work to resume

NAB Business Confidence Index slumps to -66 in March

China’s Trade Balance (CNY): Returns to surplus in March, imports pop while exports drop

China’s March Trade data (USD): Surplus beats estimates as imports drop marginally

Japan’s Aso: Will allow firms to extend deadline for submission of securities report to end-Sept

Key focus ahead         

EUR/USD rises on broad-based dollar weakness

EUR/USD gains as signs of peaking in the virus outbreak weigh over the US dollar. Above-forecast China March yuan-denominated trade data is supporting risk reset. The spot appears on track to challenge the 50-day average resistance. 

GBP/USD: Firmer above 1.2550 despite fears of extended lockdown in the UK

GBP/USD refreshes the monthly top amid the broad US dollar weakness. Coronavirus keeps flashing red signals, comparatively more for the US. The UK Deputized leader Raab signals one more month of lockdown.