Forex Today: Antipodeans slip on fresh US-China trade spat, UK politics/ Brexit news – Key

Risk-appetite took a hit, as the Asian trades kicked-off on Monday, as markets reacted to the fresh US-China trade clash at the APEC meeting over the weekend. Meanwhile, ongoing Brexit uncertainty amid increased odds of the UK PM May losing the vote of confidence further weighed on the risk sentiment.

As a result, the Yen got a fresh lift that dragged the USD/JPY pair to fresh two-week lows near 112.60 before bouncing back to 112.80 level. The Antipodeans slipped amid renewed trade tension, with the Kiwi back below 0.6850 while the Aussie attacked 0.73 handle, having failed to close the bearish opening gap. Both the EUR and the GBP traded on the back foot amid broad-based US dollar strength, as the risk-off action boosted the demand for the safe-haven greenback.

Meanwhile, the Asian stocks traded mixed, with the Japanese equities slightly higher while the Chinese equities turned lower after a positive start. The equities remained somewhat buoyed amid a rebound in oil prices. WTI traded nearly 1% higher above the 57 handle while Brent held gains above the 67 mark. Gold prices on Comex were offered below 1220, as King dollar ruled the roost.

Main Topics in Asia

Over the weekend: Trade tensions back on the rise, Brexit set for another lap

Scotland's Sturgoen: parliament should not endorse May's Brexit deal - Reuters

UK CBI President to endorse May's Brexit deal

China to launch barley anti-dumping investigation against Australia

IHS Markit: UK business morale approaching decade-low - Reuters

UK”s Johnson: UK should 'massively accelerate' preparations to exit EU on WTO terms

Italy’s Deputy PM Di Maio: EU election will shake up politics, help Italy

US VP Pence: US could double tariffs on China - Reuters News

Japan Chief Cabinet Secretary Suga: Watching US-China ties closely

ECB’s Villeroy: ECB could consider new TLTROS if needed

BoJ’s Kuroda: We are determined to continue current easing policy

Key Focus Ahead

Markets are poised for a quiet start to the EUR macro calendar this week, with no first-tier economic releases on the docket today. From the Euroland, the current account data will drop in at 0900 GMT while the construction output figures are due at 1000 GMT. The UK docket remains absolutely data-empty. The EU Financial Stability review and the Bundesbank monthly report will offer some trading impetus to the EUR, GBP traders amidst fresh Brexit-related headlines and Italian politics to drive the fx market volatility in the coming days. Besides, the ECB speaks will be closely heard, as the ECB Governing Council members Carlos Costa and Danièle Nouy are scheduled to speak at 0900 GMT and 0915 GMT respectively.

The NA session also remains a thin showing, with the only NAHB housing market index on the cards that is likely to have virtually no impact on the markets. New York Fed President Williams is due to speak at 1545 GMT.

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The path of least resistance is now on the higher side. The pair, however, could fall back to ascending (bullish) 5-day exponential moving average (EMA), currently at 1.1366, courtesy of heightened US-China trade tensions.

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