Themes

• General mood is “risk off”
• Japanese Unemployment 2.7% from talk of 2.8%
• Australian Retail Sales stronger than expected at 4.4%
• RBA leaves Australian Interest rates unchanged – as expected – Ends Q.E.

What’s Moving

Very quiet trade in Asia today, with tight ranges seen across all the majors amid Luna New Year holidays being celebrated in China.

Data was largely shrugged off today, with Japan and Australia showing slightly better numbers, but with the market already factored short the USD, very few were game to add to positions.

As expected, The Reserve Bank of Australia left local interest rates unchanged today in their first meeting since last November. They also discontinued the recent bond buying program. This paves the way for a potential RBA rate hike next month. Some were hoping for a hike today and the AUD/USD is off slightly on this news.

Data tonight sees:

• German Retail Sales (E: -1.3%)
• Swiss Retail Sales (E: +5.5%)
• German Unemployment (E: -4k)
• Euro-zone Unemployment (E: 7.1%)
• Canadian GDP (E: +0.4%)
• US Construction Spending (+0.7%)