An FT source story suggesting that "top.......>

FOREX: An FT source story suggesting that "top U.S. & Chinese officials have

resolved most of the issues standing in the way of a deal to end their

long-running trade dispute" has bolstered risk appetite, even as the story noted

that the two parties remain divided on the key issues of U.S. tariffs on China &

enforcement mechanisms. As a result, AUD has extended gains registered on the

back of strong AU retail sales and trade balance prints, topping the G10 pile.

- JPY crosses have tracked fluctuations in risk sentiment, but USD/JPY has

remained in a ~30 pip range. JPY underperforms its G10 peers at typing.

- USD/CAD made a 10 pip round trip following trade comments from U.S. President

Trump, who called for USMCA ratification & lashed out at Canada's trade

advantage. The rate then slid into negative territory as risk appetite has

revived.

- Focus today turns to global composite & services PMIs (with Caixin data from

China coming up within ~45 mins), U.S. ADP employment change & EZ retail sales.

Fed's Bostic, George and Barkin will speak on one panel, ahead of addresses from

their Fed colleague Kashkari and ECB's de Cos.