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A two-week delay of China tariffs hike,.......>

FOREX
FOREX: A two-week delay of China tariffs hike, announced by U.S. Pres Trump via
Twitter, has set the tone for early Asia-Pac trade, unleashing some risk-on
flows. The decision, labelled by the POTUS a "gesture of good will," comes after
yesterday's release of a list of U.S. goods to be exempted from Chinese levies.
- USD/JPY briefly penetrated the Y108.00 barrier for the first time since Aug 1,
with a source pointing to offers in USD/JPY close to the figure. The rate still
operates nearby. CHF has mimicked the move of its safe haven peer & depreciated.
- The Antipodeans have picked up a bid on the back of aforementioned headlines.
AUD/USD topped out at $0.6882, above the 50.0% retracement of the Jul-Aug slide
but shy of yesterday's peak.
- USD/CNH broke under CNH7.1000 and holds below there despite moving away from
worst levels. Focus turns to the PBoC fix (RTRS est. is for CNY7.0929).
- All eyes today are on the ECB, set to deliver its monetary policy decision.
Policy announcements are also awaited out of Turkey and Malaysia. U.S., German
(f) and French (f) CPIs, EZ industrial output & Swedish PES unemployment are the
data highlights. South Korean markets are shut for a national holiday.

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