EUR

• Inflation focus. Strength in core inflation across Europe raised some concerns, but the US PCE deflator matched analyst predictions.• FX swings. There was a modest burst of intra-day FX vol overnight. The USD recouped its post PCE dip with month-end rebalancing a factor.• AUD & JPY. On net, AUD is little changed. Yesterday’s ‘hawkish’ BoJ rhetoric could be positive factor. A lower USD/JPY normally translates to a higher AUD. Inflation was in focus overnight with European country level readings and the US PCE deflator (the US Fed’s preferred gauge) released. The results generated a bit of intra-session volatility across...

• Negative vibes. A slightly more bearish tone ahead of tonight’s US PCE deflator data. Equities & bond yields a bit lower. AUD & NZD underperform.• RBNZ holds. RBNZ clipped the markets hawkish wings. Rates held steady & odds of another hike were watered down. NZD fell. This dragged on the AUD.• AU CPI. Headline inflation failed to re-accelerate in January. But there was little new info on services prices. AU retail sales released today. A slightly more bearish tone across markets overnight as traders gear up for the release of the US PCE deflator (the US Fed’s preferred inflation...

• Low vol. US/European equities consolidated, while bond yields nudged up. FX markets were well contained. AUD range traded over the past 24hrs.• RBNZ decision. RBNZ meets today. Markets are assigning a ~21% chance they hike rates. No change could see the NZD fall & AUD/NZD snap back.• AU CPI. January reading of the monthly CPI indicator due today. Annual inflation forecast to re-accelerate. This may catch the eye & give the AUD a boost. Another uneventful session overnight. US and European equities consolidated (S&P500 +0.1%), with yesterday’s lift in Asia not flowing through (China’s CSI300 index rose 1.2%, its...