The major currency pairs have stuck to........>

FOREX: The major currency pairs have stuck to narrow ranges in Asia-Pacific

hours, with modest risk on flows noted after China stated that it will retaliate

to U.S. tariffs after the first round of import duties went into play at

midnight E.T. While this may seem contradictory to the common thought process,

the move was expected and didn't lead to any immediate escalation in rhetoric

from Chinese policymakers.

- The NZD has been the marginal outperformer although major USD pairs have

generally stuck to narrow ranges, either side of neutral levels.

- USD/CNY & USD/CNH had both traded over 250 pips higher ahead of the tariff

imposition but now trade well shy of highs.

- U.S. & Canadian labour mkt reports & UK labour costs headline Friday. One eye

will be on developments at the UK cabinet summit. A story in the Independent

noted that Theresa May's new plan for future relations with the EU will be "dead

on arrival". EU officials said any hint that the UK wants to be part of the

single market on goods, but not services will be rejected. Elsewhere, reports

have suggested that PM May has won over trade minister Fox.