For a 2nd session, commodity FX rallied at....>

FOREX: For a 2nd session, commodity FX rallied at the expense of the USD. AUD,

NZD & CAD were stronger as energy, industrial & precious metals prices continued

their climb. A speech from Chinese Pres. Xi supported risk appetite as markets

read a conciliatory re: trade, aided by a somewhat friendlier tone toward China

from Trump, helping USDJPY climb through yesterday's highs, touching 107.40

before paring to 107.20.

- The risk supportive backdrop & reports that Saudi Arabia is unofficially

targeting an $80/bbl oil price helped AUDUSD traders focus on the 200-DMA at

0.7813. The move filtered through to USDCAD which has now dropped 1.5% in just 2

sessions, and now trades sub-1.2600. EURUSD ran to 1.2380 as ECB's Nowotny

talked up the prospect of a depo rate hike as the first step of any tightening

sequence, thereby narrowing the rate corridor. The moved was reversed as the ECB

noted that his views aren't representative of the broader governing council.

- The Gov's of the PBoC & RBA are due to speak in Asian hours, while UK

production, US CPI & the FOMC minutes headline on Weds. BoJ Gov Kuroda is due to

speak in early London hours, with ECB's Draghi due to speak later in the day.