Another heavy session for Antipodean FX.......>

FOREX: Another heavy session for Antipodean FX after Citi and NAB front-loaded

their RBA easing calls, both forecasting a 25bps cut to the cash rate at the

October meeting. This created selling pressure in AUD crosses and further

weighed on the already struggling kiwi. A piece of S&P commentary highlighting

weaknesses in NZ banking system helped to prevent the kiwi from taking flight.

- The Antipodeans were spared more damage amid an appreciation in yuan, which

benefited from a stronger than exp. PBoC fix and the announcement of a Hong Kong

auction of central bank bills. CNH overnight HIBOR rose the most in over a

month. Meanwhile, markets digested a modest reduction to China's 1-Year LPR. 

- The release of Japanese CPI data, which saw the core reading slow to +0.5% Y/Y

from +0.6% (in line with expectations), provoked little immediate reaction.

- The U.S. dollar softened, with deputy-level U.S.-China trade talks underway.

Conflicting signals from White House advisers continue to cloud the outlook.

- Canadian retail sales, EZ cons. conf. and German PPI take focus today. Fed's

Williams, Rosengren and Kaplan, ECB's Visco and Rimsevics, Norges Bank's Olsen

and Riksbank's Jansson will speak.