Forex Today: AUD ignores retail sales amid risk-off, EZ Sentix – Up next

Risk-off sentiment and resurgent USD demand were the main drivers in the Asian session on Monday, as the Aussie shrugged-off in-line with expectations Aus retail sales data and remained weighted by reduced risk appetite amid reports of 4 ballistic missiles launched by North Korea into the East Sea.

While the greenback recovered ground across the board after Friday’s sell-off, as probability of a March rate hike rises to nearly 80% in response to Fed Chair Yellen’s hawkish comments.

Attention now turns towards the fundamentals due out from the Euroland, the retail PMI and Sentix Investor Confidence. Meanwhile, BOE MPC member is scheduled to speak at the University of Lincoln in mid-Europe. Moving on, the US docket offers little, with the only factory orders data on the cards.

Main topics in Asia

China targets 2017 GDP growth target of around 6.5% - RTRS

Addressing the National People's Congress (NPC) in Beijing for its annual session on Sunday, Premier Li noted that China is aiming to expand its economy by around 6.5% in 2017.

North Korea fires unidentified projectile into East Sea - Yonhap report

According to Via Yonhap News, South Korea's largest news agency, North Korea has just fired an unidentified projectile into the East Sea, with sources in the milirary suggesting that it may have fired a ballistic missile. 

Australia's Jan retail sales comes in line with expectations

Australia's retail sales for the month of January came at +0.4% vs 0.4% expected and -0.1% last. The data is a neutral input for the Aussie. 

New Zealand Treasury – consumption growth moderated in Q4 2016

The latest monthly economic indicators (MEI) report from New Zealand Treasury takes note of the softer private consumption growth in the December quarter following a strong performance earlier.

Key focus for the day ahead                                                     

EUR/USD: Bearish grip intact near 1.0600, Sentix eyed

Markets now look forward to the Eurozone retail PMI and Sentix investors’ confidence data for fresh cues on the EUR, while the major is expected to remain undermined as divergent monetary policy outlooks between both continents come back to the fore.

RBA to remain neutral tomorrow - TDS

Analysts at TD Securities offer insights on the RBA cash rate decision due tomorrow at 0330GMT.

Will this week's US NFP confirm a Fed rate hike in March? - Nomura

Nomura's Economics Team provides their view on the upcoming US Non-Farm Payrolls report, due on Friday, and set to be a critical release to rubber stamp the next rate hike by the Federal Reserve in March, judging by the latest hawkish comments from Fed's Chair Janet Yellen.