Trump's Tweets Lend A Helping Hand To AUD

U.S. stimulus chatter dominated the limited overnight news flow as President Trump went atweet, calling for lawmakers' approval for standalone PPP fiscal aid & airline support. This brought some mild relief to riskier currencies, after the POTUS jolted markets in NY hours by pulling a break on stimulus negotiations with the Democrats, in defiance of Fed Chair Powell's repeated appeals for sufficient fiscal aid. AUD outperformed in G10 FX space as e-minis gradually recovered, while a BBG trader source cited demand for the currency from dip buyers and option desks.

• CAD landed at the bottom of the G10 scoreboard, even as Canadian lawmakers approved PM Trudeau's economic recovery plan, averting a snap election. A market contact flagged European demand for USD/CAD early on and floundering WTI prices kept a lid on the loonie. USD/CAD had a look above Oct 2 high of C$1.3332 before trimming gains.
• USD/KRW re-opened on a firmer footing, in a delayed reaction to a the collapse of U.S. fiscal negotiations, but has virtually erased gains since.
• Activity was limited by the ongoing holidays in China and major crosses were happy to hold fairly tight ranges.
• FOMC Sep MonPol meeting minutes, German and Norwegian industrial output figures, Italian retail sales, French trade balance take focus from here. Fed's Williams, Kashkari, Bostic, Rosengren and Evans, ECB's Lagarde and Villeroy, Riksbank's Skingsley and Norges Bank's Bache are set to speak.