The aussie is looking perky after a stronger inflation reading from earlier, with AUD/USD buyers hoping to cement a firmer break above the 0.7000 mark this week. The kiwi also got a light jump on its own strong inflation reading but gains have been hard to come by as the 0.6500 continues to thwart buyers in NZD/USD for now.
Meanwhile, equity futures are proving to be a drag with tech leading the downside amid Microsoft's slowing sales outlook. The hotter inflation data in Australia and New Zealand are also arguably playing a role, bringing into question said narrative that price pressures have peaked globally.
The Bank of Canada will kick off the next round of central bank bonanza later today and while markets are expecting a 25 bps rate hike, they do have the propensity to surprise so just be mindful of that.
Looking ahead to Europe, there shouldn't be much on the agenda that will be too impactful so it may end up being more of a quiet one again.
0900 GMT - Germany January Ifo business climate index
0900 GMT - Switzerland January Credit Suisse investor sentiment
1200 GMT - US MBA mortgage applications w.e. 20 January
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
