Regional focus will fall on Australia. The.....>

ASIA: Regional focus will fall on Australia. The RBA will issue its latest

MonPol decision, with consensus looking for the cash rate to be left unch. at

1.00%. 5/34 surveyed by BBG look for a 25bp cut. The RBA is set to continue to

put its faith in the recent tax cuts & bounce in house prices, while wanting to

wait & see how the recent cumulative 50bp of monetary easing feeds into the

econ. It will of course be keeping one eye on developments in the labour mkt,

with broader downside risks including the seemingly ever-increasing tensions

between China & the U.S., as well as the mostly -ve round of domestic Q2 GDP

inputs released thus far. Elsewhere, any hypothetical discussion surrounding the

possibilities of extraordinary MonPol will be scrutinised. Australian retail

sales, Q2 BoP data & net exports contribution to GDP are also due.

- S Korean GDP will likely be looked through, as it is a "final" print, but CPI

data is also due.

- Elsewhere, the daily USD/CNY fix will be eyed after USD/CNH tagged a fresh

record high in the wake of a BBG source story suggesting "Chinese & U.S. off'ls

are struggling to agree on the schedule for a planned meeting this month."