Optimistic reception of the news that a.......>

FOREX: Optimistic reception of the news that a Covid-19 vaccine developed by

Moderna produced antibodies in all participants of the trial flicked the risk

switch to on, but a closer look into reports on the matter revealed some

caveats. Second thoughts, combined with with boiling U.S.-China tensions,

limited market reaction. Commodity-tied FX lead gains in G10 FX space, with safe

havens still underperforming, albeit crosses are back from earlier extremes.

- Renewed risk appetite pushed AUD/JPY to its best levels in a month. The rate

moved in sync with AUD/USD, which had a look above $0.7000 and a key resistance

from Jul 9 high of $0.7001, before trimming gains.

- KRW picked up a bid at the re-open of onshore trade, drawing support from

aforementioned risk-on flows & a surprise downtick in South Korea's unemployment

rate. The won gradually shed some of the initial gains.

- USD/CNH slid below the CNH7.0 mark, but failed to consolidate there. Partial

unwinding of earlier risk-on flows prompted the rate to recoup some losses.

- Coming up today we have UK CPI, U.S. industrial output, as well as a MonPol

decision from the BoC. Speaker slate features BoE's Tenreyro & Fed's Harker.