High-beta FX were favoured over safe..........>

FOREX: High-beta FX were favoured over safe havens, even as regional equities

took their cue from U.S. counterparts & declined across the board. There was

little new in the way of headlines or data releases, which could drive risk-on

flows in the space. AUD leads gains among the G10, CHF brings up the rear.

- AUD shrugged off comments from RBA Asst Gov Kent, who said that the

transmission of recent rate cuts "is working the usual way." He noted that RBA

members focus on inflation rather than unemployment, adding that the need for

unconventional policy tools is unlikely, but possible.

- Likewise, little immediate impact was seen from the latest Aussie NAB biz.

conf. survey. The headline index ticked higher to 4 from 2, but the employment

sub-component slid to 0 from 5, driving the biz. conditions gauge lower.

- In Asian EMFX, IDR's depreciation prompted Bank Indonesia to declare readiness

to intervene if needed to preserve rupiah stability. INR slid sharply at the

open, with USD/INR breaking above INR71.0 to touch best levels since Feb.

- German ZEW survey & CPI, U.S. CPI and UK labour mkt report take focus from

here. Central bank speaker slate remains empty.