Forex Today: Yen rebounds in Asia, UK CPI, US PPI & Yellen eyed

Most Asian traders were left largely unimpressed by better-than expected Chinese CPI and PPI releases, although the Aussie cheered the bullish fundamentals and emerged the biggest gainer this session, followed by the Yen. The Japanese currency regained footing versus its American counterpart after the buck slumped across the board on reports of the resignation by the US National Security Adviser Flynn.

Looking ahead, the immediate focus shifts to the German prelim Q4 GDP report, which will be followed by the UK CPI, Eurozone flash GDP estimate and ZEW surveys. While the US docket offers the PPI data and Fed Chair Yellen’s testimony before the Senate.

Main topics in Asia

NAB Monthly Business Survey much better than expected - NAB

Australia's NAB Monthly Business Survey for the month of January 2017 came much better-than-expected, with business confidence jumping to 10 vs 6 prior, while business conditions surged to 16 vs 10 prior (revised from 11).

China's Jan inflation figures tick up on Lunar new year factors

China's Consumer Price Index (MoM) (Jan) came at 1.0% vs 0.7% exp and 0.2% last, while Consumer Price Index (YoY) (Jan) was  2.5% vs 2.4% exp and  2.1% last. 

More on US eyes new tactic to press China - WSJ

More details reported by the Wall Street Journal on its earlier headline reading - US to mull new currency strategy to pressure China.

Sources: National Security Adviser Michael Flynn has resigned - CNN

CNN quoting sources familiar with the matter that the US National Security Adviser Michael Flynn has resigned.

Key focus for the week ahead                                                  

When is German prelim Q4 GDP and how could affect EUR/USD?

Preliminary reading of the fourth quarter German GDP is due later today at 7GMT. The consensus amongst traders expect the bloc’s economic power house to expand 0.5% inter-quarter in Q4 and 1.7% YoY vs. previous readings at 0.2% and 1.5%, respectively.

Fed Yellen’s testimony: Expect no new surprises – BAML

Analysts at Bank of America Merrill Lynch (BAML) note that the Fed Chair Yellen is expected to sing the same old tune in her congressional testimonies commencing later today.

US PPI preview - Nomura

Analysts at Nomura take us through a brief preview on what to expect from the upcoming US factory gate prices data.

GBP/USD testing 1.2550 ahead of UK CPI

The British Pound is advancing to 3-day tops vs. the buck on Tuesday, lifting GBP/USD to the mid-1.2500s.