Forex Today: AUD dumped in Asia, EZ Sentix in focus

Holiday-thinned light trading extended into the second week of 2018, with no relevant macro news reported, except for the second-tier Aus AIG construction data, which had limited impact on the Aussie trades.

However, the AUD/USD pair came under heavy selling pressure after the Australian government predicted a 20% drop in iron-ore prices this year in its latest forecasts report. The Kiwi followed suit and faded a spike to 0.7185 levels while the Yen remained on the offers amid a broad-based US dollar rebound and higher Treasury yields.

Meanwhile, oil and copper prices traded with mild gains in Asia while gold prices eased to $ 1320 heading into a Big macro week.

Main topics in Asia

Weekend headlines: UK PM May's 'no deal' Brexit cabinet

As for the weekend's Brexit news, the UK press was reporting that PM May will appoint a minister for a "no deal Brexit."

UK CFOs see increased Brexit dangers, focused on cost control – Deloitte Survey

The results of the latest Deloitte Survey of 112 Chief Financial Officers (CFOs), showed that Brexit remained a major concern for more than 100 of Britain's largest companies.

PBOC’s Ji: There is room for an increase in interest rates in the short term

The China Daily reports comments from the PBOC’s Research Bureau Deputy Head, Ji Min, delivered over the weekend.

ECB’s Weidmann: ECB should fix date to end bond purchases - RTRS

The ECB Governing Council member and Bundesbank Chairman Jens Weidmann, in an interview with the Spanish newspaper El Mundo over the weekend, noted that the ECB should set a date to end its asset-buying program.

Australia Govt forecasts 20% iron ore price drop in 2018

Australia’s the Department of Industry, Innovation and Science are out with its latest forecasts on iron-ore prices for this year.

Key Focus ahead

Heading into a brand new week, we have a data-light EUR calendar today, with the German factory orders, Eurozone Sentix Investor Confidence and retail sales releases of note. From the UK docket, the second-liner Halifax HPI data is due on the cards.

The NA session has no economic news out of the US while the BOC’s Business Outlook Survey will be published alongside the FOMC member Bostic’s speech about the US economic outlook and monetary policy at the Rotary Club of Atlanta.

EUR/USD: Will it regain 1.2050 ahead of EZ Sentix?

The EUR/USD pair defends minor bids in Asia, having failed to sustain the post-NFP recovery near the midpoint of the 1.20 handle.

GBP/USD looks to test 1.3550, Brexit jitters back in play?

The GBP/USD pair reached fresh three-day tops of 1.3586 in Asia, although failed to hold the upside and turned negative heading towards early Europe.   

Key events risks today - Westpac

Analysts at Westpac noted the near-term event risks.

Eurozone: What to look for next week - Danske Bank

In the euro area, the minutes from the ECB’s December meeting are the highlight next Week, explained analysts from Danske Bank.

Australia: Key events this week - TDS

Analysts at TDS enlist the key economic releases due on the cards from Australia in the week ahead.