USD Firms, Softer Equities Weigh On Risk Appetite

The USD is on the front foot in Asia today. Equity sentiment is weaker, with US futures lower and China and Hong Kong reversing some of yesterday's gain. The China CPI print, at the margins, is less supportive of easier policy settings, which may have trimmed risk appetite in the equity space. It was a supporting factor in yesterday's trading amid easing speculation.

• USD/JPY is up ~0.1%, last printing ¥131.65/70. Jan PPI printed below expectations, YoY 9.5% vs 9.7% exp and the MoM read was flat. Parliamentary officials confirmed the government will announce its nominations for BOJ Governor on 14 Feb at 11am Tokyo time (0200 London time).
• AUD/USD is ~0.2% softer, there was little reaction to the RBA's SoMP. The bank noted whilst inflation will rise next year, CPI will return to the target band in 2025. AUD was pressured through the session, before finding support below $0.69. Copper and Iron Ore are both lower today weighing on AUD at the margins.
• NZD/USD is down ~0.3% last printing $0.6310/0.6315. There was little support from improving domestic data; Jan Business NZ Manf PMIs were on the wires, the measure is back in expansionary territory at 50.8 rising from the prior of 47.2. Jan Card Spending rose 3.3% from -1.2% prior.
• EUR and GBP are both down ~0.2% as the greenback strength weighs.
• Cross asset flows are showing a risk-off tone. E-minis are down ~0.2%, the Hang Seng is ~2% softer. DDBXY is up ~0.2%.
• In Europe today we have UK GDP, further out there is the Canadian labour market report and UoM consumer sentiment survey. Elsewhere, Fedspeak from Gov Waller and Philadelphia Fed President Harker will cross.