Cautious trade comments from Peter Navarro....>

FOREX: Cautious trade comments from Peter Navarro pushed safe havens to top of

the G10 FX table, in what was a limited Asia session. Navarro suggested that it

is unlikely that there will be a quick breakthrough in Sino-U.S. trade talks.

Elsewhere, a BBG interview with U.S. Tsy Sec Mnuchin saw him note that "U.S.

trade off'ls expect Chinese negotiators to visit Washington," but he wouldn't

say whether the prev. planned September meeting would take place.

- The DXY is just off recent highs. The NY/Asia crossover saw Mnuchin note that

the Tsy "doesn't intend to intervene in the USD right now," but he did signal

that he'd prefer any future move be coordinated with the Fed & global allies.

- AUD struggled on the back of a weak headline Q2 CapEx print, making it 2/2 in

terms of soft Q2 GDP input readings over the last couple of sessions. Across the

Tasman, NZ saw the softest ANZ biz confidence reading since the GFC.

- MXN struggled, driven by Argentina seeking to "re-profile" its sovereign debt

obligations. USD/MXN has broken trend resistance that dated back to Dec '16.

- Looking forwards, German state/national CPI as well as EZ confidence metrics

provide the highlights ahead of the second estimate of Q2 U.S. GDP.