Modest risk off flows were seen in Asia as....>

FOREX: Modest risk off flows were seen in Asia as the JPY lodged marginal gains,

USDJPY last at 107.05. It is worth noting that there is $1.1bln worth of USDJPY

107.00 option expiries rolling off at today's 10AM NY cut.

- PBoC Gov Yi stated that China will not devalue the yuan as part of the ongoing

US-China trade spat, however, markets didn't react to the headlines.

- AUDUSD has stuck to a tight range in Asia-Pacific dealing, after Tuesday's

move higher, last ~0.7755, with additional support being drawn from a technical

break higher in AUDJPY. NZDUSD has moved back from session highs and last deals

at 0.7350. Leveraged accounts had been adding to longs in the early part of the

session, with talk of macro sellers located a fair way above market at 0.7420.

There was also chatter of bids from Tokyo names around 0.7350.

- EURUSD pared a chunk of its gains on Tuesday after the ECB distanced itself

from comments made by Nowotny on Tuesday, although the cross has now erased the

moved lower.

- 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 on.