AUD off the mat, but no return of risk........>

FOREX: AUD off the mat, but no return of risk appetite

-While high beta FX has recovered slightly (AUD, NZD higher), there's been no

material return of risk appetite as global equities remain weak and there's been

no reversal or alleviation of political or economic tensions in Hong Kong, Italy

or Argentina. This is reflected in global equity prices, with European core

indices all lower from the off, a sharp drop across Asia-Pac markets and a

(very) minor bounce for US futures.

-Mirroring the modest uptick in commodity-tied FX, CHF is on the backfoot as

markets consolidate the sharp rally seen since the beginning of August.

Nonetheless, EUR/CHF managed to eke out a fresh cycle low overnight at 1.0862,

showing the SNB clearly have more work to do to slow weakness in the cross.

-UK jobs data fared slightly better, with earnings numbers modestly better than

expected, although any optimism was countered by the uptick in the unemployment

rate off the cycle low of 3.8%.

-US CPI data takes focus from here, but the calendar remains light - giving

markets ample opportunity to jump on any headline risk going forward.