U.S.-China trade war continues to prove.......>

FOREX: U.S.-China trade war continues to prove that risk assets can turn more

sour. G10 price action in early Asia-Pac hours has been driven by U.S. Tsy's

decision to name China a currency manipulator. USD/CNH printed a new all-time

high, while safe haven FX have been bought at the cost of high-beta currencies.

- A stellar NZ labour market report has saved NZD from the plight of its

commodity-tied peers, pushing the currency firmly to the top of the G10 pile.

Headline unemployment dropped to 3.9% from 4.2%, even as consensus pointed to

4.3%. Upbeat data more than countered the initial pressure noted as ANZ boosted

their RBNZ easing call. Worth noting that NZD crosses are ebbing off highs, as

the broader risk-off theme clips the kiwi's wings.

- USD/KRW surged to a new YtD high before paring gains amid a reported

intervention by S. Korea's FX authorities, aiming to curb KRW weakness. Familiar

themes are in play here, with the won weighed on by U.S.-China & Japan-S. Korea

trade tensions, as well as N. Korea's recently intensified missile-testing.

- The RBA will deliver its MonPol decision later today. Aussie trade balance and

German factory orders are also due. Fed's Bullard will speak in U.S. hours.