The Aussie took the lead among the G10........>

FOREX: The Aussie took the lead among the G10 currencies, with participants

awaiting the RBA monetary policy decision. Most forecasters expect a cut at this

meeting, with interpolated OIS currently pricing in a ~85% probability of a cut.

- Safe haven currencies had picked up an early bid as U.S. TR has proposed

adding tariffs to a further $4bn worth of EU goods over the bloc's aircraft

subsidies, but the initial moves were retraced, although EUR still struggles.

- KRW was damaged by yesterday's combination of softer than exp. import data &

news that Japan is to limit tech exports to South Korea.

- MXN was supported by comments from U.S. Pres Trump, who said that "Mexican

tariffs are off of the table" as the country is doing a great job.

- Chinese Premier Li said that Beijing will keep the yuan at a reasonable,

equilibrium level, but will not engage in competitive currency devaluation.

- Focus today turns to Canadian m'fing PMI, UK house price index and German

retail sales. Expect comments from RBA's Lowe, ECB's Knot & Vasiliauskas, BoE's

Carney, as well as Fed's Williams & Mester. EU leaders will continue their

summit re: filling the top EU jobs.