Risk-off tone has been apparent in the........>

FOREX: Risk-off tone has been apparent in the early part of today's Asia-Pacific

session, as weekend's reports suggesting that Sino-U.S. trade talks reached a

major deadlock inspire risk aversion. The start to the week has continued to see

hawkish rhetoric surrounding the Sino-U.S. trade spat, with U.S. President Trump

tweeting that Washington is "right where it wants to be" with China.

- Safe haven demand has buoyed JPY and, to a lesser extent, CHF. The yen is

comfortably the best G10 performer, having improved further after the Nikkei 225

opened on the back foot.

- High-beta FX has come under pressure from the aforementioned risk-off flows,

with AUD leading losses among the G10 currencies.

- In Asia, USD/CNH has touched a fresh multi-month peak and continues to test

the level, as it has moved further away from its 200-DMA breached last week. KRW

has suffered alongside CNH on the back of fallout from the trade war.

- As a reminder, Hong Kong observes a national holiday. Today's data docket is

rather thin, with focus falling on Norwegian GDP figures. RBA's Debelle,

Riksbank's Ohlsson, as well as Fed's Rosengren, Clarida & Kaplan will speak.