Escalation in U.S.-China tensions took........>

FOREX: Escalation in U.S.-China tensions took centre stage, allowing USD to lead

safe haven currencies to the top of the G10 scoreboard. U.S. President Trump

lashed out at Chinese officials via Twitter, drawing a response from Beijing's

state media. GBP joined commodity FX in their retreat, following yesterday's

testimony from BoE Gov Bailey, who refused to rule out negative interest rates.

- That said, AUD was the worst G10 performer amid concerns over China's trade

relations with Australia. The AFR ran an old story re: China's inspection

procedures for iron ore imports under a sensationalist headline, which may have

confused some, amplifying existing pressure on the Aussie.

- NZD failed to defy the risk-off tide even as RBNZ Chief Economist joined his

colleagues in downplaying potential for imminent deployment of -ve rates, while

Westpac pushed their forecast of a -ve OCR back to Apr '21 from Nov '20.

- KRW shook off initial gains with local trade data for the first 20 days of May

under scrutiny. Imports & exports plunged further, but chip exports recoiled.

- Global PMI data & U.S. initial jobless claims take focus on the data front,

while ECB's Panetta and Fed's Powell, Williams & Clarida will speak.