Participants shied away from safe havens,.....>

FOREX: Participants shied away from safe havens, convinced that the U.S. and

China are edging towards their initial trade pact. An FT headline suggesting

that the White House considers removing some of the tariffs on China inspired a

round of risk-on flows, even as the full story was heavily caveated. JPY

remained on the back foot since. The Antipodeans shed gains registered of the FT

headline, but regained poise after the RBA left its cash rate unchanged (in line

with forecasts), while failing to communicate urgency to ease policy further.

- The yuan drew support from trade optimism. As a result, USD/CNH yet again

probed the water below its 100-DMA & a key support zone, despite posting a

knee-jerk higher after the PBoC trimmed the interest rate on its 1-Year MLF.

Chinese Pres Xi delivered a speech at the trade expo in Shanghai, pledging to

continue opening up the economy, while boosting imports through lower tariffs.

- Today's highlights include services/composite PMI surveys from across the

globe, U.S. trade balance, EZ PPI and Riksbank MonPol meeting minutes. ECB's

Villeroy, Muller and Visco, Fed's Kaplan, Barkin and Kashkari, as well as

Riksbank's Ingves are set to make addresses.