Wider defensive feel has crept in, taking.....>

FOREX: Wider defensive feel has crept in, taking hold in G10 FX space.

Sino-Australian tensions came to the fore as local press reported that China has

blacklisted four Aussie abattoirs. Pressured by trade matters and broader risk

backdrop, AUD leads commodity-tied FX lower and is the worst performer in the

basket. JPY has picked up a bid and outperforms in the space, with USD/JPY

retreating below its 50-DMA and Y107.50, a breakout level violated yesterday.

The greenback is the second-best performer among G10 currencies.

- KRW is the worst performer in Asia after getting the initial boost from

yesterday's demand for USD. Cautious mood has pushed the rate higher still.

- Chinese inflation data comes out at the bottom of the hour, with U.S. CPI and

Norwegian GDP due later in the day. ECB's Stournaras & Fed's Bullard, Kashkari,

Harker, Quarles and Mester will make comments today.