The Asian currency markets witnessed a quiet start to the week, with the Lunar New Year holiday in China casting a long shadow over trading activities. As the mainland markets remained closed for the week, the region's trading conditions were further subdued by the US Presidents' Day holiday, resulting in a thin trading environment. However, this wasn't the only factor affecting the markets. The Reserve Bank of New Zealand's upcoming monetary policy decision, where a hold is widely anticipated, has kept investors on edge, with retail sales data indicating fragile demand. Meanwhile, Japan's fourth-quarter GDP figures fell short of expectations, expanding by just 0.2% annually and 0.1% quarter-on-quarter. This has led to a modest weakening of the yen, with Prime Minister Sanae Takaichi set to meet BOJ Governor Kazuo Ueda for policy discussions. In other news, regional equities were consolidating recent gains, with Japan's weaker data taking some momentum out of the market. Corporate news saw Japanese media reporting that Starbucks Korea plans to open at least 100 new outlets this year. However, the main focus remains on the central banks and their policy decisions, with the markets eagerly awaiting any signals that could impact the direction of the currency markets.
