European open: a busy day of Eurozone data

FXStreet (London) - Asian markets were steady overnight, with few directional drivers. The Australian dollar was one of the few big movers on disappointing data.

Australian fourth quarter private capital expenditure declined 5.2 percent against consensus expectations of a 1.3 percent decline. The drop undoes the 3.6 percent gains in the third quarter. Plant and equipment investment dropped by 8.6 percent, enough to drag on forecasts for fourth quarter GDP figures released on 5 March, however next week's government spending and net exports numbers should give a clearer picture.

We saw some further slight weakening of the yuan overnight, with Beijing setting the USD/CNY higher to CNY6.1224. There has been some tempering of Chinese demand concerns, with expectations that China's weakening of the yuan is setting up to widen the trading bands to +/-2 percent.

We finally have some data of substance in Europe today. The crunch in Eurozone private credit continues with private loans declining a further 2.2 percent. Eurozone consumer confidence numbers are due at 10:00 GMT, with expectations of a further decline to -12.7.

Focus later will be on German CPI due at 11:00 GMT and expected to see a further decline to 1.1percent year-on-year, following last month's 1.2 percent print. We've already seen a 14k decline in German employment numbers, but unemployment remains at 6.8 percent.

Once the German CPI numbers are out of the way, we then have a full schedule of ECB governing council members with Weidmann speaking at 13:00 GMT followed by Nowotny and Praet, and then Draghi is set to speak at 18:30 GMT.