Risk appetite was tempered in the early.......>

FOREX: Risk appetite was tempered in the early part of today's Asia-Pacific

session, as a WSJ story re: Sino-U.S. trade talks stated that "early indications

are that the two sides remain sharply divided". As a reminder, top-level

bilateral negotiations commence on Wednesday. Broader risk-off flows & the

Nikkei 225's decline (last ~1% lower on the day) have allowed JPY to outperform.

- A soft AU business conditions print (within the NAB Monthly Business Survey)

delivered a blow to AUD, sending it to the bottom of the G10 pile. AUD weakness

limited NZD, albeit to a lesser degree. 

- GBP crosses have edged lower in the aftermath of yesterday's press reports

stating that PM May wants Tory MPs to back the "Brady amendment", which would

replace the Irish backstop with "alternative arrangements", in an attempt to

forge an intra-party compromise, although the EU remains opposed to this

solution, and eurosceptics seem reluctant to back the amendment. 

- Focus today turns to U.S. consumer confidence, a vote on amendments to the

Brexit deal in the British House of Commons, as well as Apple's earnings report.

Elsewhere, ECB's Villeroy, as well as Riksbank's Floden & Ingves will speak.