ANZ note that "the escalation of trade........>

FOREX: ANZ note that "the escalation of trade tensions between the US and China

have been behind the more recent weakening in Asian currencies. Our models

suggest that the Malaysian ringgit is the most under-valued currency based on an

average of the PPP and BEER bases, with fair value estimated at around 3.55

against the US dollar. Following the recent sell-off, the Chinese yuan is the

next most under-valued currency in the region, with average fair value at around

6.00. At the other end of the spectrum, the Indian rupee is still the most

over-valued currency despite being the worst performing Asian currency

year-to-date. Our models put fair value for the rupee at 75. There is a large

divergence in view on the valuation of the Philippine peso between our PPP and

BEER models. This suggests that if the Philippines can get inflation under

control and address their deteriorating external position, the peso could

rebound very sharply. In aggregate, the misalignment for USD/Asia as a whole is

close to a level that has tended to signal that a turnaround may be around the

corner. Hence, even if trade tensions show no sign of easing anytime soon, the

extent of further Asian currency weakness may be limited from here."