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Is Australian Prime Minister Scott Morrison Handling The China Disagreement Over Coronavirus Reasonably ?

Let's get one thing straight. Everybody is frustrated by how the Coronavirus has taken over the world's economy. There is no doubt about it. The Covid-19 is a juggernaut of epic proportions. Things came to a head this week when the United States' President, Donald Trump, insinuated that he would like to see China brought to task for the role they have played, in the Coronavirus epidemic spreading to almost every country. Now President Trump is not one to mince words. He says there is more going on with China's role in the epidemic and he is not at liberty to divulge this information just yet.

The currency markets are very sensitive to geopolitical movements. When President Trump Tweets or PM Scott Morrison makes a statement and it reaches a crescendo in the news cycle. The currency markets react. Governments react, the big banks get into the act. I do not know much about PM Scott Morrison, I have not followed him for that long but he does seem to think, from what I have noticed, is that China should open itself up to an internationally led investigation from other countries. Now exactly what countries would be interested in joining this investigation is rather foggy. Not that many countries have gone along with what the Australian PM wants to happen.

The general consensus seems to be that it is too early in the fight against the virus to try and single China out for some type of inappropriate behavior. The markets seem to think the same thing. They have been extremely volatile the past couple months but they at least started to find some direction in the last few weeks. That is true for the currency markets at least.

After statements were made by PM Morrison, China responded by saying that it would not be in Australia's economic interest to continue this line of reasoning. The Australian Dollar has weakened in the last 24 hours. The Swiss Franc, Chf, has gained strength and investors have moved their money into safe havens like the Swiss franc. So time will tell how long this brewing debate will last but New Zealand did make a statement that they supported the Australian governments view of China's handling of the coronavirus.

So Australia has shown the world that they are on the world stage. As one of the top traders with China, you must take into consideration how their economy is handling the current situation.


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