Markets calmed down after yesterday's.........>

FOREX: Markets calmed down after yesterday's sell-off. Aussie labour mkt data

positively surprised, underpinning a rally in AUD. A surge in employment coupled

with an uptick in participation rate to a record high of 66.1% kept unemployment

rate unch. at 5.2%. There was a fly in the ointment; spare capacity remains as

underemployment inched higher, while prior employment figures were rev. lower.

AUD/USD halved gains promptly after the reaction spike before climbing again.

- Safe haven FX came under pressure as regional benchmark equity indices trimmed

losses, while U.S. equity futures posted modest gains.

- A speech from RBA Dep Gov Debelle was pretty uneventful. He mentioned that he

is unsure if U.S. yield curve inversion is a reliable signal of recession.

- In EMFX, Brazilian central bank said they will draw upon USD reserves for the

first time in a decade in the wake of a sharp real depreciation; reverse

currency swaps will be offered alongside spot.

- On today's docket: U.S. industrial output & Empire m'fing survey, U.S. & UK

retail sales, and a policy decision from Norges Bank. South Korea & India are

off for national holidays.