AUD reached the top of the G10 pile on the....>

FOREX: AUD reached the top of the G10 pile on the back of a solid labour mkt

print in early Asia-Pac trade only to nosedive all the way back to the bottom

after NAB hiked its variable mortgage rates by 12-16bp citing an increase in

funding costs. The fall in AUD was due to RBA's perceived reaction function

owing to the wealth effect. AUD dragged NZD with it, after the kiwi began the

session as the G10 leader extending on yesterday's post-NZ CPI gains. 

- The yen traded mixed, as regional equities lacked any clear impetus. The

Nikkei 225 briefly moved into positive territory before retreating, allowing JPY

to recover from worst levels. 

- USD/KRW hovers around unchanged levels, after the BoK left its MonPol settings

unchanged as exp., the Bank trimmed its CPI & GDP outlook and noted that it must

consider if further policy adjustment is necessary, with considerations re:

loosening of MonPol not required at present. 

- Spotlight today falls on MonPol decisions from the ECB & Norges Bank, with

both exp. to keep their respective policy setting unch. Key econ releases

include flash PMIs from the U.S. & EZ. Elsewhere, BoJ Gov Kuroda will speak.