The confluence of strong regional data........>

FOREX: The confluence of strong regional data releases and an FT source story

re: Sino-U.S. trade talks breathed life into risk appetite. Australian trade

surplus rose to A$4.801bn from A$4.351bn vs. a forecasted decline to A$3.700bn,

while retail sales accelerated to +0.8% M/M, more than exp. The pair of key

Aussie prints came just before the FT reported that U.S. and China "have

resolved most of the issues standing in the way of a [trade] deal," albeit

noting that the two parties remain divided over U.S. tariffs on China &

enforcement mechanisms. Finally, Chinese Caixin services & composite PMIs topped

exp., with the services gauge touching its best levels since Jan 2018.

- AUD topped the G10 pile as a result, with NZD lagging its Antipodean cousin.

- JPY posted losses vs. all of its G10 peers, as the aforementioned risk-on

flows came to the fore. The Nikkei 225, last seen ~0.9% higher on the day, had a

look into negative territory, before rallying to the present levels.

- Focus today turns to global composite & services PMIs, U.S. ADP employment

change & EZ retail sales. Fed's Bostic, George and Barkin will speak on one

panel, ahead of addresses from their Fed colleague Kashkari and ECB's de Cos.