Daily Morning Report 02/11/2012

The Dollar traded slightly higher across the board during Asia-Pacific session as it touched 3-day highs in USD index at 80.14 in an intraday double high, last at 80.09, just where it was 2 months ago. USD has been stronger since previous Asia-Pacific open yesterday against Pound, Euro, Swiss Franc, and specially Yen, while it's been weaker against the commodity currencies such as Aussie or Kiwi.

The U.S. economic damages inflicted by Hurricane Sandy could reach $50 billion, according to new estimates that are more than double a previous forecast. Some economists warned on Thursday that the storm could shave a half percentage point off the nation’s economic growth in the current quarter.

In other news, there have been no surprises in the Bank of Japan Monetary policy minutes from Oct4/5, with members insisting that Japan's economy faces the critical challenge of overcoming deflation.

As the statement reads, "this challenge will be met through efforts by a wide range of economic agents to strengthen the economy's growth potential and support from the financial side. It will proceed with the monetary easing in a continuous manner by steadily increasing the amount outstanding of the Asset Purchase Program." "The Bank continues to conduct monetary policy in an appropriate manner. The Bank will also do its utmost to ensure the stability of Japan's financial system, while giving particular attention to developments in global financial market" the statement adds.

Elsewhere, Australia’s Producer Price Index remains at 1.1% in 3Q, while New Zealand’s commodity prices rose for the third straight month in October, led by gains in wool and dairy products while aluminium fell. The ANZ Commodity Price Index increased 1.3% last month, with 12 commodity prices gaining two declining and three unchanged.