Risk took a hit overnight with the JPY.......>

DOLLAR: Risk took a hit overnight with the JPY registering moderate gains and

equities lower on the session. AUD underperformed after the release of soft

Westpac Consumer Confidence data (m/m reading weakest since Sep 2015) and holds

toward the base of its $0.7049-82 daily range.

- DXY trades either side of the 97 level, held to a tight 96.95-97.02 range. The

50% retracement level of 95.82-97.71 & 100-dma provides support at 95.82/78,

while topside resistance is seen at 97.25/30.

- Gold made a clean break of the $1300 level for the first time in nearly two

weeks. The yellow metal squeezed to $1305.83 which brings the 21-dma & 50%

retracement of $1346.80-1280.94 back into view at $1310.84/1313.87. Bulls will

also need a close above the 50-dma ($1303.78) for confirmation of the uptrend.

- WTI and Brent trade $0.20 above settlement levels respectively.  

- US data from PPI & Durable Goods the highlight at 1230GMT. In January the

final PPI decreased by 0.1%, but according to the MNI median PPI is expected to

increase by 0.2% in February. MNI median expects durable goods orders to

decrease by 0.5% in February after a rise of 1.2% in January.