Asian currencies’ arrest slide as WHO’s confidence in China’s Virus response raises worries regarding the resiliency of infections. This Thursday, WHO released a statement saying that the outbreak of the virus was an emergency worldwide and the response of China observed would reverse the tide of the spread of the virus’.

The data that demonstrated the activities of Chinese services taking pace this month was sufficient to halt trading from investors that wait for further information regarding the epidemic to gauge its possible human and economic loss. Deaths due to virus reach 213 in China while the cases of infection reach 9,692, which is a sharp rise from 7,711 just a day before. Though the Australian & New Zealand currencies recovered due to the services data after facing a plunge, Chinese yuan faces a little fluctuation of around 6.9793 a dollar.

“We think the impact will be particularly frontloaded and likely larger than that of the SARS outbreak,” said a BNP Paribas economists in a statement that the year-on-year growth of the current quarter figure in China might come under 5%.

We do not know exactly how the situation will evolve over the coming days, weeks and months and therefore what the duration of the shock will be. The risks appear skewed to the downside, with scope for potentially harmful mutations of the virus due to a large (and rising) number of infected individuals.

The Antipodean currencies are pounding for the last ten days, while investors liquefy the assets exposed to china’s virus’ fallout. The Aussie stands 4.1% weaker and will see the worse if the selldown does not reverse this month.

Ray Attrill, Head of FX Strategy at National Australia Bank said that,

Aussie and kiwi are what I’ve called the whipping boys, if you like, for expressing concern about the spreading of the virus and its potential global economic ramifications.

Over 50 million headcounts that exist in Hubei province, the inception point of the outbreak, are surviving in a virtual lockdown. A number of global airlines that fly to China’s mainland are stopped while economists slash their projections of Chinese growth. Though yen had been steady and stood at 109.00 per dollar while the dollar remains stable at $1.1030 a euro.

Opposed to the Australian dollar, yen adds another 3.2% for 10 days ever since the concerns regarding the virus started toiling the markets and against Korean currency, the yen gains around 4%. Whereas Thailand that remains dependent on Chinese tourism has its currency stubbornly resisting days of leveraging its position and central bank’s ease of policy shed 4% this month.

Chris Weston, the Head of Research at Melbourne brokerage Pepperstone said that

The problem for markets is the inability to price risk because lack of certainty around this. We’re probably going to hear a much clearer definition about how this is contained somewhere between the 3rd and 8th of February.

As per the latest Asian trading update, the traders are shifting their high-risk investments to low-risk investments with full steam for the growing anxiety over China’s swiftly spreading Coronavirus and its effect on the Chinese economy.

On Wednesday, investors had expressed their concerns over China’s Coronavirus impending economic impact on hold and supported the upbeat US and Australian markets. Besides, the Asian stocks tracked Wall Street rebounded overnight, which was driven by Apple Inc’s earnings.

While re-assessing the situation on the economic impact on the Coronavirus, the death toll in China has raised to 130+ and about 6000 confirmed cases of this outbreak. After returning from the lunar New Year holiday, Hong Kong Markets fell steeply to 2.5% on China’s Coronavirus anxiety.

China’s National Health Commission (NHC) remarked that the country’s Coronavirus death toll reached 170, at the same time, the number of infected victims increased to 7,711. Moreover, Japan, the US, New Zealand, Singapore, and Taiwan removed their nationals from Wuhan and quarantined them.

Investors expressed their concerns over the US Federal Reserve’s (Fed) over the US economic outlook, despite the increasing pressure in China. The stocks which were traded in Asia accumulated substantial loss, which was followed by a 5 percent sell-off in Taiwan stocks.

In the middle of increasing risks, yields on a ten year US treasuries benchmark had a direct hit of a new three month low of 1.5600 percent and while towards the close of the session, S&P 500 futures dropped to 0.60 percent. Additionally, oil prices dropped to nearly 1 percent over the downward economic trend, as the outbreak played a very significant role in the oil demand growth prospective.

Nevertheless, EUR/USD and cable traded relatively flat by keeping its current trading range ahead of the German macro releases and the base rate decision of Bank of England (BOE), which is due later Thursday.

Taking into account the encouraging US macro data, China Coronavirus outbreak and its impact on the US-China phase one trade deal, the Fed chair Powell’s economic outlook for the first six months will be closely scrutinized.