National holidays in China and Hong Kong......>

FOREX: National holidays in China and Hong Kong limited the potential for major

shocks, leaving the impending RBA monetary policy decision front and centre. The

kiwi's losing streak continued and NZD/USD printed a new YtD low, as a weak QSBO

and the adoption of more aggressive RBNZ easing calls by several sell-side desks

dented the NZD. Kiwi weakness filtered through into AUD to an extent.

- USD was bid across the G10 currency board, with BBG trader sources pointing to

demand from index funds after a good showing from the greenback on Monday. DXY

rose to a fresh YtD peak at 99.51, a level not seen since May 2017.

- KRW took a hit at the open as South Korean CPI slipped on a Y/Y basis for the

first time on record. Subsequent recovery helped trim the won's losses vs. USD.

- BoJ Tankan indicated a drop in biz. sentiment & solid capex. Average USD/JPY

rate assumed by major manufacturers for FY2019 was Y108.68 vs. Y109.35 in June.

- Today's data highlights include a series of m'fing PMI numbers from across the

globe, EZ CPI and Canadian GDP. Central bank rhetoric is awaited from Fed's

Clarida, Evans and Bowman, as well as ECB's Draghi, Lane, Holtzmann and

Weidmann, not to mention RBA Gov Lowe who will hold a post-MonPol presser.