Forex Today: Antipodeans unfazed by better China trade, Focus shifts to US data

Dhwani Mehta FXStreet

Forex today was a quiet affair in Asia, with most majors sticking to tight ranges, consolidating yesterday rebound amid broad-based US dollar sell-off. The EUR/USD pair extended its previous rally and hit weekly tops above 1.2060 levels, as hawkish ECB minutes continued to underpin. Meanwhile, the Antipodeans showed a limited reaction to the upbeat Chinese trade report while the USD/JPY pair managed to keep the 111 handle amid mixed Asian equities and dismal Japanese current account data.

Main topics in Asia

Trump to extend sanctions relief to Iran - Bloomberg reporter on Twitter

Bloomberg news foreign policy reporter Nicholas Wadhams latest tweet reads as follows-

China’s Dec trade data (Yuan terms): Surplus widens on exports surge

China's trade balance for December, in Yuan terms, came in at CNY +362 bn vs +235.2 bn expected and +263.6 bn last.

China’s Dec trade data (USD): Surplus unexpectedly widens

The China customs published trade balance for Dec in USD terms, reporting a big beat on expectations in the trade surplus.

S. Korean FinMin: Shutting down crypto exchanges needs more consultations

Following the latest update on cryptocurrencies, the South Korean Finance Minister Kim Dong-yeon was on the wires, via Yonhap, citing..

S. Korean government may release coordinated Crypto measures soon - Yonhap

South Korea’s news agency, Yonhap, is out with the latest news on cryptocurrencies, noting that the South Korean government may release coordinated crypto measures soon.

Key Focus ahead

There are no relevant macro data due to be reported in the European session, as the dust settles over the hawkish ECB minutes aftermath. The main market moving events for today remain the US CPI and retail sales that will be reported at 1330 GMT, followed by the releases of a couple of minority reports.

Amongst central bankers’ speeches, German Bundesbank President Weidmann and FOMC member Rosengren will be up on the rostrum in the NA session. Also, in focus will be the US rigs count data for fresh impetus on oil prices and the CAD.

EUR/USD clocks 7-day high above 1.2060

The common currency continues to defy gravity in Asia, as the ECB December meeting minutes released yesterday called for a gradual adjustment in the forward guidance to better reflect the improved growth prospects.

GBP/USD: 1.3600 back on sight ahead of US CPI?

The GBP/USD pair extended its rebound from eight-day troughs and went to hit fresh three-day highs at 1.3565 in the Asian trades, before easing back near the midpoint of the 1.35 handle.

Gold - Higher oil prices a boon or curse?

Brent oil hit $70 a barrel for the first time since December 2014. Will it have a positive impact on gold? As per textbook rules, oil price rally boosts inflation expectations, thus leading to higher demand for gold (inflation hedge).

US: Key economic events ahead - Westpac

Analysts at Westpac are out with a brief preview of the key macro events due on the cards from the US docket later today at 1330 GMT.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.