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China sells off further as tariff talk........>

FOREX
FOREX: China sells off further as tariff talk dents sentiment
-Chinese equity and currency markets slipped sharply Monday, denting risk
sentiment across Asia-Pacific and resulting in a lower open for stock market in
Europe. USD/CNY, after falling slightly on Friday, resumed its uptrend to
register the highest close since late September. This provided the USD a modest
boost from the get-go, but the DXY remains below Friday's highs of 95.323.
-Faltering Chinese sentiment filtered through to the AUD, with macro names
pressuring AUD/USD from $0.74 to the day's lows of $0.7367. The RBA rate
decision due overnight will dictate direction from here, although analysts see
no change in policy.
-Despite a political fracture appearing in Germany's ruling coalition, the EUR
is holding up against most others, with markets now eyeing any leaks from the
CDU/CSU talks being held this afternoon.
-Focus now turns to US June ISM numbers and a speech from ECB's Praet at
1430BST. Volumes may remain light ahead of the July 4th holidays in the US.

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