JPY crosses edged lower on the back of a......>

FOREX: JPY crosses edged lower on the back of a stronger than exp. JP GDP,

albeit with a deflator that operates just above flat. USD/JPY last ~Y110.90,

with sources pointing to strong Japanese sellers in USD/JPY, whilst reminding us

of the strong onshore buying from Y110.70 yesterday.

- There was no notable reaction in AUD to the latest RBA SoMP, which held no

particularly large surprises with the change to the unemployment projection

flagged earlier in the week, while the short term minor moderation in the Bank's

inflation outlook does little to change policy stance. Commentary around wage

growth remains muted.

- NZD/USD has continued to ease in early dealing, briefly breaching $0.6600,

before recovering to $0.6615. The moderation in the NZ manufacturing PMI

generated more of a reaction than usual in early dealing, likely owing to the

RBNZ's lower growth profile/highlighting the risks around growth. Elsewhere it

is worth noting that Fonterra reduced last season's 2017/18 forecast Farmgate

Milk Price to $6.70 (prev. $6.75).

- Focus today turns to UK GDP/output, U.S. CPI & Canadian labour mkt report.