Market News & Analysis

Top Story

AUDJPY double impact Apple and RBA

With key U.S. equity markets out overnight for a holiday, the lead for traders in the Asian time zone has come from a warning from Apple that it was unlikely to meet its revenue guidance in the March quarter and the RBA Boards February meeting minutes.

Apples warning is a direct result of the impact of coronavirus and comes as data released this morning showed the rate of new coronavirus infections has continued to fall both in the epicentre Hubei and the rest of China. Assuming a similar rate of decline in new infections in the coming days, by next week the number of new daily cases will be minimal and confirm the rate of new infections peaked two weeks ago.

While some disruption to Apples revenues was expected, the impact has been worse than feared. According to Apple the impact will last longer than anticipated “we are experiencing a slower return to normal conditions than we had anticipated.”

Apple shares have been a pivotal player in the strong start to the year for U.S. equity markets and in light of this, it’s not surprising today's warning has prompted a modest fall in S&P500 futures and ushered in a tone of mild risk aversion across Asia.

Compounding the risk aversion move for AUDJPY, the release of the RBA minutes for February showed the bank retains a firm easing bias, particularly if the labour market was to deteriorate. A very good reason why Thursdays Australian Labour force report will be closely watched.

As can be viewed on the chart below, AUDJPY slipped out of a corrective trend channel in late January trading to a low of 72.40. Despite best attempts to recover the lost ground in February, today's double impact has resulted in AUDJPY breaking short term trendline support and recent lows 73.60.

This break should set up a retest of last weeks 73.00 low, although it will probably take a weaker than expected Labour force report to see AUDJPY break the year to date lows.

AUDJPY - double impact Apple and RBA

Source Tradingview. The figures stated areas of the 18th of February 2020. Past performance is not a reliable indicator of future performance.  This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.