U.S.-China trade matters & PBoC activity......>

FOREX: U.S.-China trade matters & PBoC activity translated into a rollercoaster

session. Early trade saw U.S. Tsy designate Beijing as an FX manipulator, which

unleashed risk-off flows. But risk sentiment found some reprieve as the PBoC

said it will auction CNH30bn worth of bills & fixed USD/CNY mid-point below exp.

- The mixture of underlying risk dynamic & local events drove the Antipodean FX.

A stellar NZ jobs report inspired a decent round of NZD buying, countering the

impact of ANZ lowering their RBNZ easing call. That said, resulting NZD strength

faded somewhat, with a brief downleg in NZD/USD seen as the RBNZ 2-yr inflation

exp. was lower than in Q2. Steady AUD/NZD purchases were noted post-NZ jobs data

slump; coupled with solid AU trade data they allowed AUD to top the G10 pile.

- Safe haven FX went, as it were, from riches to rags; JPY is easily the worst

G10 performer. Elsewhere, EUR gained some traction initially, amid reports of

unwinding positions that used the single currency in carry trades.

- Early KRW sell-off reportedly invited off'l intervention to shore up the won.

- The RBA is about to deliver its MonPol decision today. German factory orders

and U.S. JOLTS data are also due, while Fed's Bullard will speak in U.S. hours.