The Australian dollar continues to be pressured lower despite the Reserve bank of Australia (RBA) stating that further cuts on rates would outweigh any benefits but warned that domestic data has not been encouraging with stagnant wage growth and weaker business investment sited as major concerns. The AUDUSD remained pressured as we see the pair trade below 0.7300 with bulls nowhere to be seen. Positive data out of Australia or profit taking on the relatively overbought USD will likely see some respite to weary AUDUSD bulls.

In Japan, the Bank of Japan (BOJ) kept rates unchanged at -0.1% and maintained their current policy with a 7-2 vote in favour as the BOJ backed this up with its expectation of moderate expansion in 2017. The meeting results led to a slight weakening of the JPY as markets expect the BOJ to remain active in its monetary policy with potential further easing in sight. This led to the Nikkei gaining 0.5% as exporters continue to gain on the back of a weaker JPY which increases the competitiveness of the exporters in the global arena.

Today’s major economic release is out of New Zealand, who have seen their currency pressured in recent trade as the kiwi economy fails to impress. The GDT Price Index, which indicates the change in prices of dairy products will be of great interest to investors as dairy products are a major export product of NZD and it is regarded as a leading indicator of the nation’s trade balance which directly affects the demand of the kiwi and thus its price. A greater increase in the price will imply that importers of the dairy products will have to source additional NZD to fund their purchases which will drive the value of the NZD higher as demand outweighs supply. However, should the figure show slumping prices, we would see the NZD depreciate as importers demand less of the NZD as supply outweighs demand