FOREX-Yuan, Aussie on tenterhooks ahead of China market re-opening

* A$ near decade low; all eyes on Shanghai reopening markets
* Yen, franc supported by virus uncertainty
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Hideyuki Sano
TOKYO, Feb 3 (Reuters) - China's yuan and its proxy, the
Australian dollar, were poised for vulnerable day of trade on
Monday in favour of safe-harbour currencies, in reaction to
authorities' drastic steps worldwide to curb the spread of a new
virus which originated in China.
Immediate focus was on how China's financial markets would
fare when they reopen later in the day, after a Lunar New Year
break that was extended to help stop a coronavirus which has
killed as many as 350 people in China's Hubei province.
Overseas, Australia, Singapore and the United States are
among countries to have ramped up border controls, banning entry
by foreign nationals who have recently visited China.
Ahead of the start of onshore trade, the offshore yuan
firmed 0.1% to 6.9889 yuan per dollar CNH= , hovering near
Friday's one-month low of 7.0070 yuan.
The Australian dollar fetched $0.66875 AUD=D4 , just a hair
above its 10 1/2-year low of $0.6670 touched last October. The
currency is often regarded as a yuan proxy as it is more freely
traded and because of Australia's reliance on trade with China.
"Given the current fragile sentiment, I would not be
surprised to see the Australian dollar slipping below its
previous 10-year low," said senior strategist Yukio Ishizuki at
Daiwa Securities.
To prevent economic paralysis triggered by the outbreak,
China's central bank said it will inject 1.2 trillion yuan
($173.81 billion) worth of liquidity into financial markets via
reverse repo operations on Monday. Still, uncertainty created by the epidemic is keeping
investors cautious, helping support safe-harbour currencies.
The yen traded at 108.33 yen per dollar JPY= , approaching
its highest level since Jan. 8.
The Swiss franc changed hands at 0.96335 franc per dollar
CHF= , near its 15-month high of 0.96135 set last month.
Against the euro, the franc stood at 1.06855 per euro
EURCHF= , just below its 33-month high of 1.0666 touched last
week.
The euro stood at $1.1084 EUR= , having risen 0.6% last
week for its first weekly gain in five weeks. However, a boost
on Friday was due mostly to month-end money flows from European
exporters.
Elsewhere, sterling fell 0.2% to $1.3174 GBP=D4 in early
trade.
Britain laid out a tough opening stance for future talks
with the European Union following its exit last week, saying it
would set its own agenda rather than meeting the bloc's rules.
Sentiment toward sterling may also be coloured by a stabbing
incident in London on Sunday, which police described as a
terrorist incident. = 6.9040 Chinese yuan renminbi)

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China's Hubei reports 56 new coronavirus deaths, total at 350
central bank to inject $174 bln via reverse repos on Feb.
3 yen, Swiss franc advance as virus fears
snowball attacker served prison term for terrorism offences,
police say ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>