Early dealing saw the JPY on top, with........>

FOREX: Early dealing saw the JPY on top, with commodity linked FX under pressure

after U.S. Pres Trump introduced the latest round of U.S. tariffs on Chinese

imports (on ~$200bn worth of goods from Sep 24 at 10%, rising to 25% at year

end). The Trump admin remains open to talks with China & some groups of products

have been cut from the original list. Trump also noted that he will immediately

pursue tariffs on a further $267bn worth of Chinese goods if China retaliates.

- Risk sentiment gradually recovered, which saw the JPY ease & commodity linked

FX recover, with no unknowns hidden in the tariff details, while China didn't

immediately table a response (choppy price action was seen on a re-run of some

comments from MOFCOM made Monday). A recent SCMP piece has noted that Beijing is

likely to cancel trade talks with the U.S., with Chinese policymakers set to

hold a meeting to decide on their response.

- AUD benefitted from the minutes from of RBA's most recent decision as the lack

of dovish rhetoric & upbeat view on growth & the domestic labour mkt allowed the

RBA to reiterate that the next move in its cash rate will likely be up.

- Calendar thin on Tuesday, keeping focus on ECB's Draghi & Villeroy.