eFXdata reports that ANZ Research flags a risk for a sharp drop in AUD/USD and NZD/USD on further negative implications from the COVID-19

"The path of COVID-19 remains both tragic and very uncertain, but the risks that infections in new countries escalate and that the recovery in global growth will be slower than expected are rising.

The AUD and NZD have traded in a relatively orderly fashion thus far, despite panic in other markets. For now, we think that this will remain the case, however, the distribution around that forecast is heavily skewed to the downside," ANZ notes.

"Should the news flow continue to evolve towards a global pandemic, we see a risk that the AUD tests USD0.58 and the NZD could fall to USD0.5," ANZ adds.