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Broader risk aversion built overnight as......>

FOREX
FOREX: Broader risk aversion built overnight as U.S. equity index futures fell
sharply on the back of a story re: a Huawei executive being detained in Canada
owing to breaches of Iranian sanctions, with the U.S. seeking her extradition. 
- USD/JPY trades Y112.67, with support noted at the Nov 20 low of Y112.31. 
- AUD underperforms among G10 FX. Little reaction noted to local data. AUD/USD
last $0.7221, bears eye the cloud top/Nov 27 low at $0.7201/$0.7199. NZD/USD
bears are focusing on the 200-DMA at $0.6859. CAD also pressured by the broader
risk aversion after falling afoul of the BoC's dovish hold yesterday, USD/CAD
briefly topping C$1.3400. 
- Yuan under pressure vs. USD following the Huawei story, USD/CNH adding ~250
pips. Current & former PBOC/gov't advisors told MNI that the PBOC will allow mkt
forces to take the yuan higher as it looks to mollify the U.S. during crucial
trade talks, but the rally will be unsustainable 
- Factory orders from Germany & U.S. ADP employment change are due in a
data-heavy session Thurs. ECB's de Guindos, BoE's Ramsden & Fed's Bostic,
Quarles, Williams and Powell are all due to speak.

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