Focus centred on the AUD & the political......>

FOREX: Focus centred on the AUD & the political dealings in Australia. Treasurer

Morrison won the run off to become the head of the ruling Liberal Party, and

ultimately the new PM. He is viewed as more fiscally responsible than Peter

Dutton, who was the bookies favourite, with his win allowing AUD/USD to register

highs of $0.7290. Any move above $0.7300 will open up the 50.0% retracement of

the $0.7381-$0.7283 move ($0.7332).

- NZD/USD unwound all of its early session losses to trade a shade higher, just

above $0.6640 last. Early session comments from RBNZ Gov. Orr were mainly

reiterations and didn't offer much fresh insight into MonPol, as he noted that

the RBNZ is in no rush to hike interest rates, and that he cannot rule out a

cut, although he did reiterate the Bank's balanced outlook re: the OCR.

- The remaining major pairs struggled for direction (outside of USD/JPY, which

ticked up), with no solid progress made at the latest round of U.S.-China trade

talks, although the two superpowers are set to keep communication lines open.

- Focus on Friday will fall on comments from Fed Chair Powell & BoE's Haldane at

the Jackson Hole Symposium, as well as any comments from the sidelines.