Trade optimism remains.............>

EMERGING MARKETS: Trade optimism remains supressed, but little fanfare Tuesday.

- CNH remains weaker following the optimism-pinching headlines that crossed

Monday. With sentiment toward a 'phase one' trade deal still depressed,

trade-exposed FX weakened across the Asia-Pac session, with KRW leading the

losses. Recent ranges were largely respected however. CNH did, however, manage

to recoup some of the losses ahead of the NY crossover as the PBOC stated that

they are to step up the use of the counter-cyclical factor adjustment,

indicating policy will remain stimulative.

- ZAR trades firmer, but there are few signs of a bullish breakout anytime soon,

with USD/ZAR bears eyeing a close below the 200-dma at 14.5513 to trigger any

breakout of the contracting November range.

- Russian PPI and the Hungarian central bank rate decision are the calendar

highlights Tuesday. Hungary are seen keeping rates unchanged once more at 0.9%.