AUD

• USD weaker. Falls in USD/JPY on back of intervention fears have weighed on USD. NZD also supported by NZ CPI. AUD near top of multi-year range.• Data flow. Q4 AU CPI due tomorrow, US Fed also meets (Thurs AEDT). AUD has had a strong run, but starting to look ‘stretched’ on momentum gauges. Global Trends A few of the recent market themes have remained in place over the past couple of sessions. Risk sentiment has remained positive with the major European and US equity markets edging higher overnight (S&P500 +0.5%). Elsewhere, bond yields ticked down a bit with the...

• Improved tone. Reports of a Greenland deal ‘framework’ boosts sentiment. US equities rose. USD index a bit firmer. AUD outperforms. NZD edges higher.• Data flow. The volatile Australian jobs report due today. US PCE deflator out tonight. Tomorrow Q4 NZ CPI is released. BoJ also meets on Friday. Global Trends An improvement in risk sentiment overnight after US President Trump dialed down his aggression with regards to Greenland at the Davos World Economic Forum. After earlier stating the US wouldn’t use force to acquire Greenland, President Trump posted that following discussions with the Secretary General of NATO a “framework...

• Geopolitical vol. Weekend US tariff announcements initially rattled markets. But the USD lost ground as yesterday rolled on. AUD & NZD higher.• US pressure points. US reliant on foreigners to fund its obligations. Reduced capital inflows could weigh on the USD over the medium-term. Global Trends There has been a modest market reaction to the weekend geopolitical news relating to Greenland. Indeed, for some the net swings may be somewhat surprising. For those catching up, over the weekend President Trump announced that eight countries (UK, Denmark, Germany, France, Sweden, Norway, Finland and The Netherlands) would be subject to a...