Risk-off prevailed at the Asia open..........>

DOLLAR: Risk-off prevailed at the Asia open following negative rhetoric from

US-Mexican trade talks and ratings downgrades for Mexico from Fitch & Moody's.

The USD registered losses across G10 as markets remain on headline watch. 

- The DXY briefly traded under the 100-dma yesterday, before rallying through

97.30 on extended react to the strong ISM-Non mfg reading. Consolidation largely

remained the theme overnight with the index tied to a narrow 97.25-34 range.

Bulls will need to hold above the 97.00 level to build on recent gains, opening

a move toward the 50-dma & 50% fibo of 98.37-96.74 at 97.52/56. While bears need

a close below the 100-dma at 97.01 to extend the downtrend towards the 61.8%

retracement of the Mar-Apr rise at 96.74.

- Gold cleared but failed to close above long-term t-line res off the Apr 11

2018 high. Gold printed $1344.16, followed by a sharp retracement off the high.

The t-line comes in at $1341.49, ahead of the ytd high at $1346.80.

- WTI closed in bear market territory, but has since recovered to $51.71.

- The ECB takes centre stage with main focus on whether they announce terms for

the TLTRO 3 issues. In the US Trade data & Jobless Claims are due for release.