AUD & NZD are coming under some modest........>

FOREX: AUD & NZD are coming under some modest pressure in early dealing on the

back of weekend headlines from the WSJ noting that China has cancelled the

planned trade talks with the U.S. amid escalation of tariff threats. AUD/USD

last ~$0.7270, NZD/USD last ~$0.6675.

- The latest smattering of Brexit headlines from the weekend has left cable

virtually unchanged to a touch higher at $1.3080 last. This comes after UK PM

May upped the Brexit ante on Friday by vocally criticising the EU's approach to

Brexit negotiations, which left GBP at the bottom of the G10 pile. May

criticised Brussels' lack of flexibility and creativity following the rebuttal

of her 'third way' solution to Brexit, appearing to place the ball back in the

EU's court for progress, a message that Brexit Sec. Raab continued over the

weekend.

- USD/JPY hovers around Y112.50, virtually unchanged on the day.

- German IFO & an address from ECB President Draghi headline the docket today.

- National holidays in Japan, China & South Korea are set to impact liquidity in

Asia-Pacific dealing on Monday.