Price action has been subdued so far,.........>

FOREX: Price action has been subdued so far, relative to the sharp moves

observed over the last few days on the back of the escalating U.S.-China trade

war. A modest risk-off feel has crept into the space as BBG reported that China

plans to revise farm products import tariff quota rules, but the details weren't

as bad as first thought. JPY has picked up a bid and outperforms its G10 peers,

aided by a slide in the Nikkei 225, while USD struggles for any upside momentum.

- USD/CNH added ~80 pips on the headline before easing off. Today's USD/CNY

fixing from the PBoC will be closely watched, after it moved markets yesterday.

- South Korean FinMin Hong pledged taking preemptive measures if herd behaviour

triggers FX instability. BoK Gov Lee said the central bank will cooperate,

focusing on stabilising FX and financial markets.

- The RBNZ will deliver its monetary policy decision later today; a 25bps cut to

the OCR is fully priced in. Rate decisions are also expected from the RBI & Bank

of Thailand. On the data front, German industrial output and French trade

balance are noteworthy, while the central bank speakers' slate features RBNZ Gov

Orr & Fed's Evans.