Risk appetite initially took a hit in.........>

FOREX: Risk appetite initially took a hit in Asia-Pac trade as mkts interpreted

the Chinese statement re: U.S.-China trade talks as indicating little in the way

of substantial progress (maybe a case of buy the rumour sell the fact). As a

result, the yen landed atop the G10 pile, with Japanese institutions driving

USD/JPY sales after the Tokyo fix, and the Nikkei 225 ~1.2% lower at writing. 

- The Antipodeans struggled vs. USD initially, before returning to a neutral

footing as the cautious tone faded, to a degree, in the 2nd half of the session.

- CAD was the underperformer as oil edged lower. As a reminder, the BoC kept its

rate on hold y'day, repeating its commitment to hiking rates to neutral, but

adding the phrase "over time". USD traded mixed, as it failed to fully shake off

yday's Fed-inspired weakness, with DXY moving lower overnight ahead of further

Fedspeak Thurs. DXY's weakness was in part due to USD/CNH moving below CNH6.80

for the first time since August, in spite of soft Chinese inflation data. 

- French industrial output & ECB meeting minutes provide some interest today,

with plenty Fedspeak due, Fed Chair Powell headlines with Barkin, Bullard,

Evans, Kashkari & Clarida, as well as ECB's Villeroy due to speak.