The USD was the winner overnight as the.......>

FOREX: The USD was the winner overnight as the U.S. Trade Rep confirmed earlier

source reports, stating that "as a result of China's retaliation and failure to

change its practices, the President has ordered USTR to begin the process of

imposing tariffs of 10 percent on an additional $200 billion of Chinese imports.

This is an appropriate response under the authority of Section 301 to obtain the

elimination of China's harmful industrial policies. USTR will proceed with a

transparent and comprehensive public notice and comment process prior to the

imposition of final tariffs, as we have for previous tariffs." A MOFCOM official

has reiterated that China will take countermeasures against U.S. protectionist

policies. As a reminder Trump has previously noted the potential to apply

tariffs on upto $500bn worth of Chinese goods.

- USD/CNH had a brief look above 6.6900 but failed to test 6.7000. Elsewhere AUD

was the underperformer, with the JPY reluctant to add to its late NY gains &

USD/JPY last operating a touch higher than Asia-Pacific opening levels at

Y111.10. Focus now turns to today's BOC decision, U.S. PPI, and speeches from

Fed's Williams, ECB's Draghi, Villeroy, Praet & Mersch, as well as BOE's Carney.