 Markets are back in risk averse mode in Asian session, with heavy selloff see in Chinese stocks and Yuan. Some noted that the gulf between US and China in trade talks have widened since last week's development. But the "gulf" has always been there. The negotiations just reached a point that both sides have to admit the differences in principles. New tariffs had took effect and more are coming. Trade war is going to drag on with no end in sight. In the currency markets, Australian Dollar opens the weak as the weakest one, followed by New Zealand Dollar. Canadian Dollar quickly pared back last week's employment data inspired gains and turned into the third weakest. Yen and Swiss Franc are naturally the strongest ones for today so far. Sterling is the third but it's just paring some of last week's losses. There is no turnaround seen in the Pound yet. Technically, USD/JPY, EUR/JPY and GBP/JPY are staying in consolidations above last week's temporary lows. For now, such consolidations are expected to be brief and we'd expect more downside ahead, maybe rather soon. GBP/USD will look at last week's low at 1.2967. Break will put 1.2865 support into focus and break there will confirm bearish reversal. AUD/USD continues to look at 0.6962 temporary low and break will confirm decline resumption. EUR/USD, USD/CHF and USD/CAD are staying an consolidations. We'd continue to favor upside breakout in Dollar in these three pairs. In Asia, currently, Nikkei is down -0.52%. Hong Kong HSI is on holiday. China Shanghai SSE is down 0.99%. Singapore Strait Times is down -1.17%. Japan 10-year JGB yield is down -0.0022 at -0.048. US DOW future is down -245 pts. | 
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