Forex Today: AUD dumped on poor CPI, German IFO in focus

The Australian CPI report disappointed markets big time, and reinforced bets of RBA rate cuts going forward, which knocked-off the Aussie sharply below 0.7550 levels. A rally in copper prices also failed to rescue the AUD bulls.

On Japan-side, the yen regained bids and jumped after the Japanese trade data showed that the country returned to trade surplus for the first time in six years. While the US dollar remained broadly weaker amid tumbling treasury yields, as markets digested latest Trump’s headlines.

Next of relevance for the EUR, GBP traders remains the German Ifo business climate surveys, with the euro expected to be saved by a slight improvement in Germany’s business morale. While the US docket remains absolutely data-dry, with the only HPI and EIA crude oil inventory report lined up for release.

Main topics in Asia

Moody's reaffirms Australia's triple A rating, outlook stable

Moody's rating agency reaffirms Australia's triple A rating, with a stable outlook, noting that the Australian economy scores very high.

Australia's Q4 CPI: All figures miss expectations

Following the marked improvement seen in Australia's Q3 2016 CPI readings, today's inflation figures for the Q4 showed a worsening picture, with all figures missing expectations.

ECB’s Lautenschlaeger: “Optimistic that we can soon turn to the question of an exit"

The Wall Street Journal (WSJ) reports overnight comments from Sabine Lautenschlaeger, the European Central Bank (ECB) Executive Board member.

Japan returns to trade surplus, monthly exports rise

Japan logged trade surplus for the first time in six years in 2016 on the back of cheaper oil imports and improvement in exports in Q4. 

Trump expected to order Mexican border wall today – NY Times

The White House officials have reportedly said President Trump will order the construction of a Mexican border wall today.

Key focus for the day ahead

German IFO survey: Markets looking for very little improvement - TDS

Research Team at TDS notes that the markets are looking for very little improvement in the German IFO survey, with the headline rising from 111.0 to 111.3 for January.

EUR/USD offered near 100-DMA, revisits daily lows

Focus now shifts towards the German Ifo business surveys due later in the European session for fresh impetus on the EUR.

Mr. Yen sees Yen rallying to 100 in 2017 as ‘Trump fever’ ends

Eisuke Sakakibara, a former top currency official at Japan’s Finance Ministry, also known as Mr. Yen for his ability to influence the exchange rate in 1990s, said that Yen may strengthen the 100 per dollar this year as Trump will fall short of expectations.

GBP: Supreme guidance? - Rabobank

Jane Foley, Senior FX Strategist a Rabobank, notes that as expected the UK Supreme Court has ruled against the government’s appeal…