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Headlines in Asia suggested US considering....>

FOREX
MNI (London)
FOREX: Headlines in Asia suggested US considering levying a 25% tariff on $200bn
worth of Chinese goods (prev. 10%). USD/CNH initially moved higher, with
pressure also seen on commodity currencies. China's Caixin Mfg PMI was less than
inspiring, but yuan still managed to recover.
- AUD/USD moved lower on the tariff headlines, operated in marginal negative
territory for the bulk of the session. NZD/USD was also pressured by the
headlines & AUD/NZD topped NZ$1.09, after a limited reaction to the NZ labour
mkt report. 
- JPY crosses eased on the back of a sharp fall in JGBs, but the FX reaction was
limited. USD/JPY edged higher in Europe, extended its post BOJ announcement
recovery to Y112.15. 
- EUR/USD was held within a tight range below $1.1700, $1.1670-85 area holds
strikes for expiring options at today's NY cut totalling E2.52bn and seen
providing attraction. EZ PMI's caused little reaction, the weaker than flash
forecast Germany Mfg PMI only caused slight weakening.  
- U.S. ADP, ISD Mfg & the FOMC MonPol decision headline Wednesday's US session.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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