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The latest intensification in trade war.......>

FOREX
FOREX: The latest intensification in trade war fears coupled with markets
perceiving the growing change of easing from the FOMC weighed on USD, after
light risk-off flows were evident in early trade.
- The initial risk aversion, stemming from lingering global trade tensions,
pressured commodity-tied FX (save the kiwi), before a combination of better than
expected Chinese Caixin PMI print and a NYT report stating that the White House
decided against tariffs on Australian goods put a bid into the Antipodeans.
- This occurred even as the latest round of Australian GDP inputs came in mixed.
- JPY gave away its early strength, although major regional equity indices
remained in the red, while CHF managed to hold gains vs. its G10 peers.
- KRW outperformed in Asian FX, even as South Korean Nikkei m'fing PMI moved
into contractionary territory & the weekend's trade data release also provided
disappointment. USD/KRW tumbled ~0.9%, with dollar weakness aiding the move.
- Global m'fing PMI readings take focus today, with comments from Fed's Daly,
Quarles, Barkin & Bullard also due. NZ markets are shut for a holiday today.

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