All change as PBoC manage the CNY higher......>

FOREX: All change as PBoC manage the CNY higher

-After the US officially designated China as a currency manipulator late

yesterday, the PBoC responded by managing the CNY slightly higher Monday,

helping drag USD/CNY off new highs of Cny7.0586. Markets are clearly still

ruffled, however, with USD/CNY implied vols and risk reversals contracts surging

across the term structure for a second session.

-The modest recovery for CNY has helped underpin an equally modest pullback in

haven FX, with JPY and CHF edging lower against most others in G10. USD/JPY

still holds below the Y107 handle at writing, helped higher by positive US

equity futures and European core indices.

-AUD, for a change, sits among the best performing major currencies in a relief

rally after the unchanged RBA rate decision. The bank still lean toward further

policy easing in the coming months, but appear to be in wait-and-see mode for

now. AUD/USD recovered to $0.6801.

-JOLTs job openings are the sole data release and Fed's Bullard speaks at

1700BST/1200ET.