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

FOREX
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.

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