GBPUSD spiked to 1.2634 from 1.2610 on a BBC report that the EU is considering a new emergency summit to get a Brexit deal done. The EU does not think an agreement can be achieved this side of Thursday's scheduled EU summit. Instead, the report suggests that the EU and UK agree to a "holding statement" to allow for further talks. The EU is talking about a special meeting at the end of October. This news probably leaked out a bit earlier today hence the reason why Cable perked up at the end of the NY session 

The USDCNY fix was lower than the setting in the previous three weeks at 7.0708. That's mildly supportive for AXJ and commodity currencies at the edge. But traders have bought into the phase one trade detente narrative and may not be willing to add more bullish Yuan risk until more positive trade talk details emerge. 

China September CPI +3.0% y/y vs +2.9% consensus, after +2.8% in August. The CPI came in slightly higher than consensus, but with the higher food price component this should come as too much as a surprise

While the factory game inflation came in on market expectations suggesting continued pressure on corporate profits

The RBA has stepped deep into murky currency competitive devaluation waters as the October minutes made direct reference to the advantages of a weaker currency as both an economic and inflation tool. The minutes showed the committee was concerned easing policy might have less of an effect now than in the past but said that at least it would influence the currency. Overall a case for easing was made

Given gold positive sensitivity to central bank easing, the yellow metal received a fillip for the RBA explicit easing bias

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