Fed Officials Split as Powell Weighs December Interest Rate Cut 
BOJ Seen Moving Toward December Rate Hike as Yen Slides 
RBA Reassesses Pricing Behaviors and Policy Impact Amid Inflation Pressures 
Bank of Korea Holds Interest Rates Steady as Weak Won Limits Policy Flexibility 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Indonesia Aims to Strengthen Rupiah as Central Bank Targets 16,400–16,500 Level 
Japan’s Inflation Edges Higher in October as BOJ Faces Growing Pressure to Hike Rates 
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:
