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

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.