AUD fell afoul of the RBA's 2018/19...........>

FOREX: AUD fell afoul of the RBA's 2018/19 corporate plan which noted that high

debt levels could complicate future policy decisions. The statement applied

pressure to AU yields, and also spilled over into the NZD. A stronger than exp.

set of Chinese official PMI surveys provided brief respite.

- USD/CAD moved above C$1.3000 as Canadian foreign min. Freeland left a meeting

with U.S. TR Lighthizer after only several minutes, noting that the 2 teams will

reconvene in the morning.

- EMFX remains in focus with TRY softening on the back of U.S. Pres. Trump

reiterating previous thoughts on Erdogan/Pastor Brunson, although USD/TRY has

failed to challenge yesterday's high. There were also reports of RBI FX

intervention & continued intervention from the Bank of Indonesia. The BOK MonPol

decision had little impact on the KRW. The USD/CNY fixing was perhaps a little

lower than most estimated, suggesting that the PBOC is employing the

countercyclical buffer that it recently reintroduced to the fixing mechanism.

- Focus Friday turns to EZ CPI & Chicago PMI, as well as Italy's sovereign

rating review at Fitch.