Day ahead is a busy end to the week – Westpac

By FXStreet FXStreet – Analysts at Westpac explained that the Asian data calendar is quite busy ahead of the lunar new year holidays.

Key Quotes:

“Today we see Jan CPI in Taiwan and Philippines, Malaysian Dec trade data and Indonesia’s Q4 GDP. Indonesia’s GDP is not seasonally adjusted so we should see the usual seasonal fall in Q4 (f/c -1.9%) on lower agricultural output. But the y/y rate is seen a touch stronger, at 4.8%.the most market-sensitive Asian data is due for release on Sunday: China’s Jan FX reserves.”

“The month saw the yuan slump early before returning to very tight ranges against USD. The data will reveal how expensive it was for the PBoC to restore stability. The -$107.9bn slide in reserves in Dec was the largest monthly fall in $ terms. Reserves were $3330bn in Dec. Bloomberg’s survey includes only 10 responses and is very scattered, from -$80bn to -$140bn. A fall in the area of say -$95bn to $110bn should be taken reasonably calmly by those markets that are open on Monday morning (including AUD). Something in this range seems fair to us but we see risks of a surprise tilted towards a record-breaking fall, -$120bn or more.”

“Markets seem so determined to …read more

Source:: FX Street