AUD Pops Higher On GDP Beat, JPY Lags G10 Peers

Australian Q4 GDP beat both market & RBA expectations, lending a degree of support to AUD and allowing the currency to outperform amid the absence of notable drivers elsewhere. The Australian Bureau of Statistics noted that "this is the first time on the over 60 years history of the national accounts that GDP has grown by more than 3% in two consecutive quarters." That said, the reaction move in AUD crosses was relatively shallow and they pulled back from highs thereafter. Some pointed to option-related selling as a factor limiting the post-GDP upswing in AUD/USD.

• The wider commodity-tied FX space firmed up a tad, propped up by stronger crude oil prices. The kiwi lagged behind its peers from the basket ahead of today's NZ$1.2bn roll-off of NZD puts with strikes at $0.7300.
• JPY remained the worst G10 performer despite paring some losses into the Tokyo fix, as benchmark equity indices broadly gained. USD/JPY struggled to attack the multi-month high printed yesterday.
• PBOC fixed its USD/CNY mid-point at CNY6.4565, 12 pips above sell-side estimates. USD/CNH faltered, albeit yesterday's trough remained intact.
• Today's data docket features a slew of Services PMIs, final Italian GDP and Canadian building permits. Speeches are due from Fed's Harker, Bostic & Evans, ECB's de Guindos, de Cos, Panetta & Schnabel as well as BoE's Tenreyro. UK Cll'r Sunak will unveil the latest UK budget.