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Today's Asia-Pac session proved to be.........>

FOREX
FOREX: Today's Asia-Pac session proved to be particularly eventful for AUD. A
strong Aussie labour mkt report triggered an AUD rally before Westpac's decision
to revise their RBA rate call pushed AUD into negative territory. Westpac now
exp. the RBA to cut the cash rate by 25bps in both Aug & Nov 2019. A subsequent
RTRS sources report re: the U.S. & China drafting multiple trade MOUs (later
repeated by BBG) supported risk sentiment, allowing AUD to recover somewhat.
- CNH was buoyant, thanks to the RTRS story, with USD/CNH having a look below
6.7000 for the first time since July.
- JPY showed some strength initially, but this largely faded as the Nikkei 225
moved into positive territory.
- Sterling was under modest pressure after Home Sec Javid said that he doubts if
a no-deal Brexit can be ruled out, a few hours after 15 ministers reportedly
threatened to vote against PM May's Brexit policies, if she keeps the no-deal
option on the table.
- Focus today turns to global PMI figures, German CPI, ECB's Jan meeting
minutes, and remarks from ECB's Praet (twice), Fed's Bostic & BoC Gov Poloz.

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