AUD bounces on new PM's appointment -The......>

FOREX: AUD bounces on new PM's appointment

-The appointment of Australia's new prime minister (the seventh in ten years)

underpinned a modest rally in AUD/USD during Asian trading hours, allowing the

pair to repair some of the damage dealt earlier in the week. Nonetheless, the

recovery so far is yet to test yesterday's highs of $0.7357.

-European equity markets trade modestly higher, helping support risk sentiment

and dent both the JPY and (to a lesser extent) the USD. USD/JPY tested the

Y111.50 level for the first time since mid-last week Friday.

-SEK is also outperforming despite printing multi-month lows against the EUR

this morning as Riksbank deputy governor stressed the central bank's rate path

projections point to further rate hikes before the end of the year.

-The Jackson Hole policy symposium kicks off today, with Fed chair Powell

speaking at 1500BST/1000EST. Markets expect little on policy this year, but

comments regarding the Fed's independence could elicit interest in light of

Trump's reported frustration toward Powell earlier in the week. US durable goods

orders also due.