A fairly slow start to the session as Asia....>

FOREX: A fairly slow start to the session as Asia has digested the recent news

flow. Price action across G10 FX space suggests a modest risk aversion, perhaps

as Sino-U.S. trade tensions have received some more attention. USD and CHF

outperform at the margin, but JPY struggles to capitalise on the defensive feel.

GDP has softened, following yesterday's comments from BoE's Bailey, who refused

to rule out negative interest rates. The Antipodeans also trade on a weaker

footing, even as RBNZ's Ha said he expects the OCR to stay unchanged until Mar

'21 & Westpac pushed back their forecast of a cut to the RBNZ's benchmark

interest rate to Apr 2021 from Nov this year.

- USD/KRW opened lower but has almost erased losses by now. Participants

scrutinised South Korea's trade data for the first 20 days of May, watched as an

indicator for the condition of global trade. Both imports and exports extended

sharp declines, but a recoil in chip exports provided the silver lining.

- Global PMI data & U.S. initial jobless claims take focus today, while RBA's

Lowe, ECB's Panetta and Fed's Powell, Williams & Clarida will speak.