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Japan Inflation Expectations Rise as BOJ Rate Hike Timing Faces Uncertainty 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
China reported a USD 51.35 billion trade surplus in January of 2017, lower than a USD 56.67 billion surplus a year earlier but above market consensus of a USD 47.90 billion surplus.
It was the largest trade surplus since January 2016, mainly driven by a rebound in exports while imports rose further.
In yuan-denominated terms, exports jumped 15.9 pct from a year earlier in January 2017, compared to a 0.6 pct rise in a month earlier.
Inbound shipments surged 25.2 pct, following a 10.0 pct rise in the prior month. In December 2016, the country reported a marginally revised USD 40.71 billion surplus.
The breakdown of January trade data will be released on February, 23rd.
The NZD underperformed after the RBNZ disappointed a hawkish market, extending the decline overnight to 0.7174.
NZDUSD has been correcting the Dec-Feb rally, with the 0.7180 level representing a common 38% retracement.
We had anticipated NZD slumps on 6th Feb and advocated suitable hedging vehicle accordingly, and they seem to be safeguarding the slumps in underlying spot that’s been showing from the last 4 days, we now uphold longs in 2 lots of 1y -0.49 delta put options, while buying 1 lot of +0.51 delta calls of similar expiry.
Please follow below weblink for our previous write up on hedging piece:
