- New Zealand trade balance comes in better than expected
- Latest BOJ minutes focus on global and domestic slowdowns
- Japan December core CPI -0.1% YoY
- Japan December retail sales rebound sharply to +2.5% YoY
- Some expectation that Greece/IIF negotiations may reach satisfactory conclusion later tonight
- Davos economic forum continues with Mario Draghi speaking later today
- Regional stockmarkets +0.3% on average
- Gold $1721/oz; Oil $99.90/bbl
With China and HK still closed, there was another reasonably quiet trading session in Asia, although theer have been 2 sell-offs in the JPY crosses. JPY crosses were sold into the Tokyo Fix but prices soon recovered to NY closing levels. They then traded sideways for a few hours before stops were triggered in USD/JPY below 77.25 late in the session.
EUR/JPY fell 40 pips when Tokyo opened as dealers readied themselves for some fixing flows. EUR/JPY fell to 101.12 and EUR/USD to 1.3075 but well reported bids near 1.3070 ensured bargain hunters were out in force. Decent sized offers from Corporates and Real money players near 1.3130 ensured a range bound session. Ranges: 1.3075/1.3119.
NZD/USD rallied in early trade on the back of strong trade data and this helped drag the AUD/USD to session highs early in the morning. The AUD fell back under 1.0600 as AUD/JPY sales emerged around the time of the Tokyo Fix. Ranges: 1.0588/1.0640
USD/JPY opened near 77.45, fell on the Tokyo open alongside the crosses and stabilised near 77.40 until some heavy stops went off late in the session. Ranges: USD/JPY 77.00/48; EUR/JPY 100.87/101.57
Cable 1.5660/95; EUR/CHF 1.2056/73
