Yuan vol. was noted, with USD/CNH initially...>

FOREX: Yuan vol. was noted, with USD/CNH initially moving higher as headlines

suggested that the U.S. is considering levying a 25% tariff on $200bn worth of

Chinese goods (prev. 10%), although the sources conceded that the touted higher

tariffs may not come to pass. China's Caixin M'fing PMI was less than inspiring,

but the yuan still managed to recover, before the USD/Yuan crosses posted fresh

highs, although USD/CNH remained well shy of Tuesday's best levels.

- AUD/USD moved lower on the tariff headlines, operating in marginal negative

territory for the bulk of the session. NZD/USD was also pressured by the

headlines & AUD/NZD topping NZ$1.09, after a limited reaction to the NZ labour

mkt report. The unemp. rate unexpectedly ticked up to 4.5%, as the uptick in the

participation rate outweighed the slightly stronger than exp. employment growth.

Average hourly earnings were particularly disappointing, although the private

wage metric met expectations, aided by the uptick in minimum wages.

- The JPY crosses edged lower on the back of a sharp fall in JGBs, but the FX

reaction was limited, and didn't stick.

- Global m'fing PMIs, U.S. ADP & the FOMC MonPol decision headline Wednesday.