Risk aversion crept into the G10 FX space.....>

FOREX: Risk aversion crept into the G10 FX space as regional stock indices sank,

taking their cue from U.S. equities. Persistent global trade worries and a

flurry of soft earnings reports in the U.S. appeared to cap risk sentiment. Safe

haven currencies gained as a result, but had to give way to the Aussie.

- AUD was the best G10 performer as it picked up a bid after the publication of

the key Australian labour market data, watched by the RBA. Whereas headline

unemployment rate and participation rate held steady, while employment growth

was far more sluggish than expected, a solid full-time jobs print and a downtick

in underutilisation sent positive signals. Meanwhile, Australian NAB Q2 biz.

confidence printed at 6 vs. the prior -1.

- USD extended yesterday's losses, landing at the bottom of the G10 pile.

- KRW recovered and took the lead among Asian currencies, despite softening

earlier as the BoK decided to cut its policy rate by 25bp to 1.50%, defying most

analysts' calls. The BoK also downgraded its GDP and CPI forecasts for 2019.

- UK retail sales and U.S. Philly Fed reading take focus today. On the central

bank speakers' slate are Fed's Bostic and Williams, as well as ECB's de Cos.