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Risk-off flows crept into the G10 FX space....>

FOREX
FOREX: Risk-off flows crept into the G10 FX space as the latest RBA minutes
revealed that members see a further easing of monetary policy as "more likely
than not." Shortly thereafter, BoJ Gov Kuroda said that the BoJ is attentive to
the impact of overseas developments and will take policy action if required.
- AUD/USD touched a fresh cycle low, as the Aussie dived to the bottom of the
G10 pile, further damaged by larger than exp. decline in domestic house price
index released alongside the RBA minutes. Little initial reaction was noted as
CBA said that it now expects two more rate cuts from the RBA this year.
- NZD ignored the release of Westpac Cons. Conf. Index, which fell to 103.5 from
103.8 in Q2, but suffered from a spillover from across the Tasman sea.
- GBP fared badly amid worries that the next Tory leader might pursue a no-deal.
- Risk-off boosted CHF & JPY, with the latter leading gains among the G10.
- Focus turns to German ZEW, EZ CPI & trade balance, as well as U.S. housing
starts & building permits. ECB Pres Draghi, BoE Gov Carney & EU Commission Pres
Juncker attend the annual ECB Forum, while the Riksbank releases its Biz.
Survey. Also of note is the second round of Tory leadership voting in the UK.

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