Risk appetite switched on despite a...........>

FOREX: Risk appetite switched on despite a defensive start, resulting from

weekend news flow centring around the ratcheting up of U.S.-China tensions, a

wave of violent protests spreading across the U.S. and an unexp. deterioration

in China's official manufacturing PMI. That being said, a memory of Friday's

optimistic reception of U.S. Pres Trump's presser about China (he didn't

announce any major, immediate moves) may have helped a recovery in sentiment.

- Within the G10 basket, safe havens are the laggards, while commodity FX lead

gains. NZD liquidity is thinner as New Zealand observes a public holiday.

- KRW is well bid as it has played catch-up with Friday's after-hours recovery

in wider sentiment. South Korea reported a surprise trade surplus for May, as

exports and imports continued to decline. USD/KRW sank through its 50-DMA.

- USD/SGD printed its worst levels in a month amid a broader USD sell-off.

- Manufacturing PMIs from across the globe (including China's Caixin Survey) and

U.S. construction spending take focus today.