AUD has struggled following weak AU data......>

FOREX: AUD has struggled following weak AU data prints, ahead of the RBA's

MonPol decision. Retail sales fell 0.4% M/M in Dec vs. exp. of unch. amidst

RBA's concern re: consumer behaviour in the face of the downturn in housing

prices, while a wider than exp. trade surplus masked a disappointing breakdown.

The underperforming AUD also dragged NZD lower vs. the remainder of G10 FX. 

- JPY has also struggled, with USD/JPY capped by Y110.00 thus far. 

- There was little reaction to the latest comments from Fed's Mester, as the

previously hawkish non-voter followed up on her more balanced/cautious addresses

made in early Jan, once again citing tighter financial conditions & sentiment as

downside risks. Although Mester ultimately noted that if the economy performs as

she expects, the fed funds rate may need to move "a bit" higher. Meanwhile, the

Fed revealed that Chair Powell & Vice-Chair Clarida had dinner with U.S. Pres.

Trump & Tsy Sec Mnuchin on Monday. Chair Powell's comments in this setting were

consistent with his remarks at his press conference of last week. 

- Focus turns to the aforementioned RBA MonPol decision, UK & EZ services PMIs,

U.S. ISM non-mfing PMI, as well as remarks from Riksbank's Ingves & Jochnick.