Price action in late Asia & early European....>

FOREX: Price action in late Asia & early European dealing was dictated by the

BOJ's policy decision, but this all changed after Bloomberg reported that

representatives from both the U.S. and China are attempting to re-engage stalled

negotiations to avert the next wave of U.S. tariffs (and potentially an

out-and-out trade war). This prompted a CNH rally of over 1% against the USD,

which dragged the AUD with it, as the Aussie quickly became the best performer

in G10 FX. AUD/USD bulls need a close above the 50-DMA ($0.7462) to open up the

next leg higher.

- USD/JPY extended its BOJ-triggered rally through the U.S. trading session,

buoyed by stronger global equity markets, and prompted JPY shorts to re-focus on

the recent Y113.17 high.

- Both EUR & GBP traded with little direction, with the latter keeping a close

eye on market expectations for Thursday's BoE rate decision.

- Wednesday sees the beginning of a new month, a slew of manufacturing PMIs, the

NZ labour market report & U.S. ADP Employment Change, as well as policy

decisions from both the Fed and the Reserve Bank of India.