A light risk-off impulse has crept into the...>

FOREX: A light risk-off impulse has crept into the FX space in early Asia-Pac

trade, amid concerns over the continued upticks in some coronavirus case counts,

political headwinds to U.S. Pres Trump & the publication of details of China's

HK security bill. That being said, initial risk-off moves have unwound since,

even as regional news flow has been calm.

- JPY & USD underperform at the margin, as U.S. equity index futures have

returned into positive territory. NZD tops the G10 pile as we type, although by

a very narrow margin. AUD has shown little reaction to a remark by RBA Gov

Lowe's that he would prefer the currency to be weaker and it is hard to argue

that it is overvalued.

- ZAR may have faced some mild pressure after South African FinMin warned that

the nation's public debt may exceed 100% of GDP in 2025, but USD/ZAR has already

erased most of its earlier gains.

- The economic docket is light today, with China's LPR fixing & U.S. existing

home sales due. ECB's de Guindos & Lane, as well as BoC's Macklem will speak.