Antipodeans cheer risk-on rally in equities, German Ifo eyed

By FXStreet FXStreet (Mumbai) – A better risk tone prevailed at the beginning of the week in Asia, with oil prices and equities extending last week’s rally and hence, boosting risk-appetite across the board. While the greenback failed to benefit from risk-on market profile and weakened against its major competitors.

Key headlines in Asia

BoJ Kuroda provides no hints at further QQE

Australia: Business confidence remains resilient – NAB

Yen bullish bets at 4-year high before BOJ

Dominating themes in Asia – centered on JPY, AUD and NZD

Despite, higher demand for riskier assets this session, sentiment was quiet mixed as markets remain wary over uncertain times ahead. The US dollar remained broadly lower, and was heavily sold-off against higher-yielding currencies such as the AUD, NZD and GBP.

While the dollar-yen pair halted its bullish run and remains offered near 118.70 region as the yen strengthened after Kuroda’s comments at Davos poured cold water or further BOJ easing bets this week. Kuroda noted on Jan. 22 in Davos that “at this stage, we don’t think the current market situation has been affecting corporate behaviour unduly. “While impressive Japanese trade balance data also underpinned the JPY. Japan’s trade balance was in surplus by ¥140.2 …read more

Source:: FX Street