Kiwi stronger, despite dovish RBNZ, UK GDP – Next up

By FXStreet FXStreet (Mumbai) – With the FOMC and RBNZ behind, focus turns back on the oil prices, they once again drive the market sentiment in Asia. Oil prices came under renewed selling pressure this session and triggered risk-aversion across the financial markets, boosting the demand for the safe-havens.

Key headlines in Asia

Japan Retail Trade s.a (MoM): -0.2% (December) vs -2.5%

PBOC injects 590 bln Yuan this week, highest since Feb 2013

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

Risk/ higher yielding assets are seen under mild pressure as risk sentiment gradually deteriorates as the black gold snaps previous rebound and falls back in the red zone. While markets also remain wary over the Fed’s outlook on interest rates after it remained concerned over the recent global headwinds and its implications on the labour market and inflation. The Asian equities turned lower, with the Nikkei falling -0.68%, while the Chinese benchmark, the Shanghai Composite index drops -0.48%.

Among the G10 currencies, the Kiwi remains the best performer and attempts a solid recovery from the RBNZ-led drop. The NZD/USD pair trades 0.23% higher near 0.6450. The Aussie also remains well bid and trades near 0.7040 levels, underpinned by upbeat Aus …read more

Source:: FX Street