The major FX pairs continued to operate.......>

FOREX: The major FX pairs continued to operate around familiar levels during

Asia-Pac hours. USD/JPY briefly topped Y110.60 before pulling back as very

limited risk off flows became apparent re: ongoing protectionist worries/lower

Japanese equities, last dealing at Y110.35.

- GBP/USD hasn't threatened to move back < $1.3200, last $1.3225. Mkt pricing of

Aug BoE hike edged higher on Weds after a strong UK Services PMI print.

- Softer Iron Ore & Copper prices continue to crimp demand for AUD as

protectionist worries do the rounds ahead of U.S. President Trump's formal

decision on the implementation of tariffs on China (due Friday). Yesterday's AU

retail sales print would have provided some solace to the RBA. As would a 5th

consecutive lower 3-Month BBSW fixing, as FY end pressures alleviate. RBA's

Heath noted that recent econ data has been positive, while she is more confident

re: a sustainable pick-up in non-mining investment. She also noted that the Bank

is paying close attention to house prices owing to effects on household wealth.

- Focus on Thursday is on BoE's Carney, ECB's Weidmann, Mersch & Nowotny, US ADP

Employment, ISM Non-Manufacturing PMI & June FOMC Meeting Minutes.