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While the greenback traded in minor...........>

FOREX
FOREX: While the greenback traded in minor negative territory by Tuesday's
close, it finished off of the lower levels seen earlier in the session. The Yuan
was the notable outperformer. CNH solidified early gains as MNI sources reported
that the PBoC may "vigorously defend the Yuan if USD/CNY nears 7.00", gaining
additional steam on reports noting that the PBoC met with domestic banks on
Monday, to warn them against herd behaviour re: the yuan. USD/CNH is sub-CNH6.82
in early Asia dealing.
- NOK & CAD sat at opposite ends of the G10 table despite their common commodity
links as stellar Norwegian industrial production numbers pressed EUR/NOK below
the 50-DMA at NOK9.4972, before recovery back over NOK9.5000. USD/CAD,
meanwhile, traded at a one-week high as traders eyed the 55-DMA at C$1.3094.
- Most other G10 FX traded inside recent ranges, with GBP underperforming for a
second session.
- Focus Wednesday falls on China trade balance, summary of opinions from BoJ's
Jul MonPol decision, comments from Fed's Barkin & RBA Gov. Lowe, and the RBNZ
rate decision late U.S. (Weds)/early Asia (Thur).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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