Appetite for riskier assets carried over......>

FOREX: Appetite for riskier assets carried over into the Asia-Pac session, after

U.S. Pres Trump's comments suggesting progress in trade talks with China helped

the S&P 500 print a new record high yesterday. A slight miss in Japanese Tokyo

CPI was shrugged, amid an otherwise light docket. The Antipodeans were bid, with

NZD leading gains in the G10 basket as NZ returned from its long weekend.

- NZD was bought after Stuff reported that NZ Superannuation Fund might drop the

policy of hedging almost all of its foreign investments in NZD. That said, a BBG

piece suggesting that NZ Tsy sees a risk of S&P removing positive outlook from

the country's AA rating sapped some of the NZD strength, albeit to a degree.

- A downtick in crude prices weighed on NOK. GBP faced some marginal pressure

ahead of today's repetition of PM Johnson's push for a snap elex.

- Asian FX were broadly higher vs. the greenback, owing to positive risk

sentiment. KRW led gains in the space; USD/KRW dropped to a (nearly) four-month

low & flirted with its 200-DMA as a result.

- Today's economic docket includes French & U.S. consumer confidence gauges, as

well as appearances from RBA Gov Lowe and ECB Vice Pres de Cos.