Rebound in CNH underpins...........>

EMERGING MARKETS: Rebound in CNH underpins healthier Asia-Pac FX

- USD/CNH hit the lowest levels of the year early Tuesday, testing the 6.9229

level printed after the phase one trade deal news in mid-December. A rebound in

regional equities and a turnaround in US sentiment ahead of the Monday close was

largely responsible, with the lack of meaningful retaliation from Iran toward

the US also helping. The Shanghai Composite holds close to the best levels since

late April, underpinning a rise in Japanese and Korean equities also. CNY

futures volumes look particularly healthy, with markets already trading well

over the average daily turnover ahead of the NY crossover.

- Following the CNH's lead, KRW had its first up day in four sessions, as the

moderation in the oil price eased concerns for oil importing nation's FX.

Hedging activity remains firm in the currency, but the put/call ratio is far

more balanced today, with put notional sitting just above calls for the Tuesday

session. 1,150 put strikes have been favoured.

- Chilean trade balance and Indian GDP data are due.