This was pretty much the first thing we said on the currency risk re coronavirus way back when the first headline hits.
And, well, yeah, here ya go:
In case you need more convincing, a snippet from a Credit Agricole note:
- regression analysis of G-10 currencies highlights AUD and NZD the most sensitive to deterioration in the Chinese economic outlook
- yen likely the main beneficiary
- Australian and New Zealand economies "exposed to China via exports"
There is more to the note, but that's the gist.
