Forex Today: USD steadies in Asia, German IFO, US House tax vote - Key

Forex today witnessed tight trading ranges in Asia, as a sense of caution prevailed ahead of the big risk event for today, the US House vote on the tax overhaul bill. As a result, the US dollar stalled its recovery and somewhat stabilized, capping the downside in most majors. Amongst the Asia-pac currencies, the Kiwi erased almost entire recovery-gains and retreated below 0.70 handle on the NZ Govt appointment of the RBNZ review panel while the Aussie traded flat below 0.7670 levels, unfazed by the RBA meeting minutes. The Yen remained on the back foot against its American peers amid higher Treasury yields.

Main topics in Asia

New Zealand ANZ Business Confidence climbed from previous -39.3 to -37.8 in January

RBA minutes: Policy consistent with sustainable growth, inflation target

The minutes of the Dec RBA meeting when interest rates were held unchanged at 1.5% have been released.

Moody's - NZ economic growth will support fiscal outlook

Ratings agency Moody's says New Zealand's broad fiscal direction is unchanged but sees moderate downside risk in government's revenue projections. 

Japan’s Aso: There is no evidence Bitcoin can become a currency

Japanese Finance Minister Taro Aso was on the wires last minutes, via Reuters, expressing his take on cryptocurrencies in Tokyo.

Japanese government raises its FY2018 GDP growth forecast to 1.8%

The Japanese Cabinet Office came out with its latest growth forecasts on Tuesday, with the key revisions found below.

World Bank raises China 2017 GDP forecast to 6.8%

World Bank has raised China 2017 economic growth forecast to 6.8 percent vs. the previous forecast of 6.7 percent. It says personal consumption and foreign trade are likely to support growth. 

New Zealand Govt appoints a panel to review the RBNZ

The New Zealand Government announced in its latest statement that it has appointed a panel to review the working of the Reserve Bank of New Zealand (RBNZ) on Tuesday.

Key Focus ahead

We have a fairly light European calendar ahead, with the Swiss SECO economic forecasts and German IFO business surveys lined up for release. Meanwhile, the NA session remains quite eventful, with the US current account, housing starts, and building permits data due to be reported ahead of the NZ GDT price index and FOMC member Kashkari’s speech.

However, these economic updates are likely to play a second fiddle to the US House vote on the tax reform bill scheduled later in the American afternoon, which is expected to set the tone for the USD markets in the coming days.

EUR/USD looks to regain 1.1800 on upbeat German IFO?

Having witnessed a volatile NY session a day before, the EUR/USD pair extended its overnight consolidation phase into Asia, as investors gear up for the next event risk in the German IFO business surveys.

GBP/USD - Inside day, yield spread at 10-month high

The short-term bias in the GBP/USD pair will be determined by the price action today.

Spain: Driven by politics - Rabobank

When the Spanish government dissolved Catalonia’s parliament and announced that an election would take place on December 21, it was hoping to draw a line under the unofficial referendum that favored an independent state, according to analysts at Rabobank.

BoJ to retain current policy by a majority vote – Barclays

The Research Team at Barclays offers its brief preview on what to expect from the outcome of the 2-day BOJ monetary policy meeting concluding on Thursday.