Escalation of the US-China trade war saw......>

FOREX: Escalation of the US-China trade war saw U.S. President Trump order an

additional round of tariffs on $200bn worth of Chinese goods in Tuesday's

Asia-Pacific session, which triggered risk off flows through the Asian &

European sessions. The US session remained limited and largely consolidated the

early moves.

- JPY was the standout performer. USD/JPY moved through the 200-dma (Y110.25),

and closed below, although the pair was off of session lows.

- EUR, GBP & AUD were hit hard. EUR/USD continued under pressure but fell short

of the May 29 low at $1.1510. The formation of a death cross in GBP/USD

pressured the pair to lows of $1.3151. Commodity based currencies suffered again

today as the Shanghai Comp hit multi-year lows. USDCAD printed C$1.3292, AUDUSD

moved through $0.7400 for the first time since May 2017 and is generating

outright bearish sentiment according to the MNI FX Technical Signal monitor. The

weak dairy auction also kept a lid on the kiwi.

- Risk events on Wednesday include NZ BoP data, ECB's Draghi, Coeure, Villeroy,

Nowotny, Knot & Lautenschlaeger, BoJ's Kuroda & RBA's Lowe.