The US Dollar edged lower during Friday trade in Asia after a news report indicated that there were some signs of success for a new drug treatment for the Coronavirus. According to the data, a clinical trial conducted in Chicago showed that most of the more than 100 patients who had been given the new drug improved and were discharged. Coupled with growing optimism that the largest economy in the world could consider reopening has helped to shift sentiment toward higher risk currencies. Currency strategists are saying that markets are anxious for any sort of good news regarding the Coronavirus and are latching on to any and all media reports that suggest the outbreak may finally be slowed.
As of 10:25 am in Tokyo, the AUD/USD was trading at $0.6375, up 0.2422%; the pair has ranged from a low of $0.63162 to a peak of $0.63849 in this session. The NZD/USD was also higher at $0.6018, a gain of 0.3201% and off the session peak of $0.60247. The USD/CAD was trading at C$1.4014, down 0.06%.
Trump's 3-Phase Plan Relies on States
On Thursday, the US President had announced a three-phase process to eventually re-open the economy. Phase one is essentially where most of the US states are now, namely social distancing and self-isolation. The second phase would be limiting gathers while still largely maintaining social distancing. The last phase would be a return to normal operations while focusing on identifying new infections. For the most part, all three phases will rely on robust testing for the virus, and will be driven on the decision of the state governors.