It was a sedate Asia-Pacific session for......>

FOREX: It was a sedate Asia-Pacific session for the major FX pairs.

- The JPY made modest advances on risk aversion stemming from weakness in the

Chinese equity space/trade war worries. The strength came despite BOJ deputy

Gov. Amamiya noting that he doesn't expect JGB yields to ratchet higher and that

the recent tweaks to the BOJ's MonPol do not represent a reduction to the level

of easing employed by the Bank. Amamiya also noted that there is a limit to the

amount that banks can lower interest rates by.

- AUD/USD & NZD/USD edged lower on the back of the aforementioned risk aversion.

AUD briefly blipped higher on the back of a much stronger than expected AU trade

print, but the move was limited and quickly unwound.

- The USD also managed to advance against the GBP & EUR, but the respective

crosses failed to threaten key near-term support levels.

- Attention turns to Thursday's BoE rate decision, where markets eye a 25bp rate

hike and the publication of r*, the Bank's estimated equilibrium real interest

rate.