The first contractionary Chinese Caixin.......>

FOREX: The first contractionary Chinese Caixin manufacturing PMI reading since

May 2017 triggered a flurry of activity in the FX space after a slow start to

the Asia-Pacific session.

- JPY found itself atop the majors as the broader risk-off flows took hold, with

USD/JPY bears now starting to focus on Y109.00, as they look for consolidation

below the Jun25/Jun26 lows. As a reminder, Tokyo remains closed until Friday.

- The USD was stronger vs. the remainder of the G10 space, benefitting from the

risk-off backdrop, while CHF reversed a chunk of its earlier losses.

- AUD found itself at the bottom of the G10 pile in lieu of the Caixin print,

with AUD/USD breaching the 2018 low (although $0.7000 held) & AUD/JPY

registering a fresh cycle low in the process. USD/CNH stuck to a relatively

tight range, while USD/KRW ticked higher on the back of weak Korean trade & PMI

prints & cautious rhetoric from the BoK.

- Global manufacturing PMI data headlines a relatively limited global econ

docket today. Focus remains on the ongoing U.S. gov't shutdown; Pres. Trump has

invited a bipartisan group of congressional leaders to the White House today.