Mild risk-off flows prompted NZD to erase.....>

FOREX: Mild risk-off flows prompted NZD to erase its initial gains, registered

on the back of a mixed labour market report. High-beta FX trade slightly softer,

while JPY leads gains in the G10 basket. CNH has relinquished some of

yesterday's gains and is taking a look above CNH7.0 at typing.

- On that kiwi data: the highlight was a downtick in unemployment rate driven by

falling participation. Underemployment & share of part-time jobs in employment

fell. Private sector wages rose at a steady rate, with avg hourly earnings

missing exp. Pricing of a cut from the RBNZ next week is ~5%.

- U.S. Pres Trump starts his State of the Union address at the top of the hour.

- Little to report elsewhere, major crosses respect tight ranges.

- Focus turns to global services PMIs (including China's Caixin gauge), U.S. ADP

employment & trade balance, as well as speeches from RBA's Lowe, BoJ's Wakatabe,

BoC's Wilkins, Fed's Brainard, and ECB's Lagarde, de Guindos, Lane and

Perrazzelli.