The Asia-Pac session was quiet and one of.....>

FOREX: The Asia-Pac session was quiet and one of two halves. Early trade saw

risk-off flows which buoyed safe haven FX at the cost of the Antipodeans, as

mkts digested Friday's round of U.S. Pres Trump's combative rhetoric against

China. However, a stronger than expected PBoC yuan fix allowed risk appetite to

recover somewhat, moderating earlier moves & rendering the outlook mixed.

- JPY remained the best G10 performer, but had to give away some of its initial

gains as sentiment improved. Liquidity was sapped by a market holiday in Japan.

- Cable printed a new cycle low of $1.2015 before posting a knee-jerk higher as

the Times reported that MPs are plotting to force Boris Johnson to ask for

another Brexit extension. Improving risk sentiment aided subsequent recovery.

- NZD spiked ~25 pips lower at one point, as BBG ran a headline stating that per

NZ Treasury the RBNZ could cut the OCR to -0.35 in a crisis. Initial sell-off,

inspired by the mention of negative rates, was retraced as the actual story

merely discussed the lowest OCR level, which would keep market rates positive.

- Today's docket is thin, includes U.S. Tsy monthly budget statement. Several

Asian markets, including Japan, Singapore and India, are shut for holidays.