JPY on top as global equities move further....>

FOREX: JPY on top as global equities move further south

-Market tumult triggered by the weekend's ire between Trump and his Chinese

counterpart extended into a second session, with MNI reports citing Chinese

government advisors adding further pressure. The report warned that trade talks

between the US and China could extend into 2020 if Trump delivers on his threat

to add an extra 15 percentage points of tariffs to swathes of Chinese imports.

The Wall Street opening bell triggered a fresh wave of equity sales, pressing US

equity futures to the lowest levels in a month and closer to 50-dma support.

Weak equities supported JPY and the USD throughout the session, putting EUR/JPY

to remain on track to close at the lowest levels since January.

-AUD held its strength throughout the day however the outperformance faded

markedly, suggesting markets see an RBA rate cut as a case of when, and not if.

AUD/USD found modest support at the $0.70 handle.

-RBNZ rate decision takes focus from here, with analysts split on the outcome,

ahead of German industrial production and Japanese services PMI. BoJ minutes and

speeches from ECB's Draghi, BoE's Ramsden and Fed's Brainard are also due.