New Zealand's business confidence index for the past quarter came out at 52 which was the highest level in 20 years and much higher than the previous reading of 38. This suggests that stronger growth is likely as business optimism rises and should pressure prices higher which, in turn, could force the RBNZ to begin the tightening process sooner than they might have anticipated. Japan's Current Account deficit widened in November to 593 Billion YEN which was higher than the 380 Billion YEN that the market was expecting. USD/JPY rose to test resistance at 103.50 on this release.
The rest of the majors were generally subdued as traders continue to try and make sense of last Friday's disappointing US payroll numbers. While most economists are content to spin this as an anomaly, the surprisingly anemic data appears to have tempered the Dollar's bullish sentiment a bit. The next data point of note is the US Retail Sales report which is due out a bit later and a weak print here would surely put the US unit on the defensive and inject more than a note of caution into the strong US economic growth story that the FED has been banking on.