Risk appetite picked up after an ABC..........>

FOREX: Risk appetite picked up after an ABC sources piece suggested that US

Treasury Secretary Mnuchin has urged Trump to exempt Canada from the steel &

aluminium tariffs. Although the piece noted that not all of the advisers

present, including trade hawk Peter Navarro, were in agreement. USDCAD moved to

session lows of 1.2928 on the story, breaching the initial recovery high from

Jun 04 at 1.2946, with the next level of support noted at Tuesday's intraday low

of 1.2914.

- AUD has benefitted from a stronger than exp. Aussie GDP print, although the

heavily watch household expenditure metric missed. AUDUSD topped out at 0.7665,

shy of the April 23 high (0.7682). NZD has lagged the AUD, but gained vs USD.

- The JPY has been the underperformer, although USDJPY hasn't managed to mount a

meaningful re-test of 110.00 as of yet, with USDJPY last at 109.85. The pair had

a couple of looks at the figure on Tuesday, with no notable break above seen,

meaning that strong resistance is expected into the 200-DMA (100.20).

- Focus on Wednesday will fall on Canadian trade data & speeches from ECB's

Praet, Knot & Hakkarainen, as well as BoE's Tenreyro & McCafferty.