Safe havens are on the defensive as "mood.....>

FOREX: Safe havens are on the defensive as "mood music" around U.S.-China trade

talks has improved. White House adviser Kudlow, who just took part in a meeting

of top U.S. trade reps, suggested that a phase-one deal is very close and

negotiators remain in touch on a daily basis. Earlier it became apparent that

top trade reps from both Washington and Beijing will hold a phone call later

today, trying to resolve remaining sticking points. Risk appetite has reared its

head, but worth bearing in mind that Kudlow called the deal "not done yet."

- High-beta FX have drawn support from improving risk sentiment. NZD shrugged

the return of the local BusinessNZ m'fing PMI to expansionary territory.

- The yuan has strengthened but struggles to break under the psychological

CNH7.0/CNY7.0 barrier. KRW is also buoyed by renewed U.S.-China trade hopes.

- On the data front, the focus turns to final Japanese industrial output, EZ CPI

& trade balance, as well as U.S. industrial output, advance retail sales &

Empire M'fing survey. RBa Dep Gov Debelle, BoC Gov Poloz and several ECB

speakers are set to appear. The Fed will publish its FSR.