Kiwi rallied overnight, with improvement in...>

FOREX: Kiwi rallied overnight, with improvement in NZ business confidence

lending support. AUD followed suit, but eased off thereafter, with AUD/NZD

touching session lows of NZ$1.0489. Markets shrugged off the RBA Dec meeting

minutes, as they reiterated familiar themes, with the Board agreeing that the

next rate move is likely to be up, but not in the near-term. 

- Participants followed a speech from China's President Xi, who did not

explicitly mention trade relations with the U.S., but struck a somewhat hawkish

note in saying that "nobody can dictate reforms to China." 

- Poor performance from benchmark regional stock indices aided the yen. The

Nikkei 225 is ~1.6% lower at writing. 

- USD bottomed the G10 pile, with DXY falling through yesterday's low. 

- CAD found itself under pressure as WTI extended losses and held near

yesterday's/fresh multi-month low (last ~$49.2/barrel). BoC Gov Poloz spoke

overnight, stressing strong fundamentals of Canadian economy, which may have

allowed CAD to add a few pips. 

- Focus today turns to German Ifo biz. climate & Canadian m'fing sales.