While risk on was the overriding theme........>

FOREX: While risk on was the overriding theme through NY dealing a spate of risk

off flow hit the broader markets in the early part of Friday's Asia-Pacific

session after US President Donald Trump revealed that he has ordered the US Tsy

to consider $100bln in additional Chinese tariffs.

- USDJPY has stabilised after the early risk off flow to last trade 15 pips or

so softer at 107.25.  There was talk of existing leveraged shorts covering their

positions under 107.10, with a view of looking to re-sell at 107.40, while

larger bids from Tokyo based funds are said to lie under 106.90.

- The AUD took a hit on the back of the Trump induced risk off flow, with AUDUSD

last trading at 0.7680, back from session lows of ~0.7660. NZDUSD also traded

lower, last 0.7265, but drew support from the 21-DMA at 0.7256. USDCAD moved

higher but failed to challenge 1.2800. GBP & EUR had lodged marginal gains

against the greenback, but EURUSD & GBPUSD are now virtually unchanged.

- Friday's docket is headlined by the US labour market report, the Canadian

equivalent will also hit & there will be speeches from Fed Chair Powell & FOMC

Voter Williams (who is of course the incoming chief of the NY Fed).