Aussie potential of further bull pressure tomorrow...

Aussie retesting resistance into 0.7750 in wake of a rise in Westpac’s measure of consumer confidence and strong PBoC setting for the onshore YUAN on the eve of China’s Lunar New Year break. Potential further upside to come.

Meanwhile the Dollar softer than forecast US inflation data has undermined the Greenback in more ways than one as bear-steepening along the Treasury curve ahead of 10 year supply reverses course and the index loses recovery momentum forged in large part via weakness in major constituents, like the Euro and Yen on dovish ECB and BoJ impulses. Moreover, Wall Street benchmarks are hitting new record highs yet again on the premise that Fed chair Powell will likely reaffirm no withdrawal of accommodative policy for the foreseeable future when he delivers a speech to the Economic Club in NY from a remote location. Looking at the DXY, 90.500 is now capping advances from a 90.249 low and approaches towards the 90.528 high amidst broad Dollar declines vs majors with the exception of a very select few.