The Antipodeans have underperformed, after....>

FOREX: The Antipodeans have underperformed, after yesterday's BBG/SCMP reports

suggested that the U.S. & China remain divided re: some key trade matters, which

tempered earlier optimism about the ongoing trade talks. As a reminder, U.S. Tsy

Sec Mnuchin & USTR Lighthizer are set to meet with Chinese President Xi today. 

- The yen has outperformed thus far, lifted by struggling Japanese equities,

with the Nikkei 225 last trading ~1.1% lower. 

- Most sterling crosses are flat, with little reaction to a BBG sources piece

which suggested that "British Prime Minister Theresa May's officials are

preparing to compromise on their demands for a re-write of the Brexit

agreement," while "the UK government is watering down its request for changes to

the contentious Irish border backstop arrangement." Such a move would likely

enrage the eurosceptic arm of the Conservative party. 

- Focus today turns to Chinese inflation data (due at the bottom of the hour),

UK retail sales, as well as U.S. U. of Mich. sentiment & industrial output.

Elsewhere, ECB's Coeure & Angeloni, as well as Fed's Bostic will speak.