Sino-U.S. tensions have roiled risk again,....>

FOREX: Sino-U.S. tensions have roiled risk again, inspiring some light risk-off

flows across G10 FX space. Sentiment took a hit form a New York Times story,

noting that the White House considers banning all members of the Chinese

Communist Party and their families from travelling to the U.S. The report added

that the draft order has not been finalised and can be rejected by the POTUS.

- This has clipped the Kiwi's wings, after better than expected Q2 CPI figures

released out of New Zealand put a mild bid into the NZD. The currency now trades

on the back foot, alongside its high-beta peers AUD & NOK. JPY has taken the

lead, owing to renewed risk aversion.

- The NYT story pushed USD/CNH higher, but the rate remains confined to

yesterday's range. Elsewhere, KRW has been little changed ahead of the monetary

policy decision from the BoK. Bank Indonesia also conclude their meeting today.

- Main focus in Asia is on Chinese Q2 GDP data & Jun activity indicators, as

well as Australian labour mkt report for Jun. Later in the day, focus turns to

ECB MonPol decision, UK unemployment & U.S. initial jobless claims, as well as

comments from BoE's Bailey and Fed's Williams, Bostic & Evans.