The USD largely consolidates European gains...>

FOREX: The USD largely consolidates European gains at the NY crossover with the

DXY comfortably above the 50-dma at 95.53. GBP was hit particularly hard on a

combination of Ex MPC Posen remarks, soft Construction PMI & USD strength to

$1.2814. Recovery efforts have so far remained shallow with focus on the

$1.2800/05 area. AUD witnessed the biggest turnaround off post RBA highs

($0.7235) to fresh cycle lows of $0.7157 on the dollar bid tone. NZD pressured

on the move touched multi-year lows of $0.6541. EURUSD comfortably remains under

$1.1600, USDJPY off its best levels of the day at Y111.42 & USDCAD touching

highs of C$1.3157. Immediate focus turns to a speech by RBA Governor Lowe at the

Reserve Board dinner in Perth at 1130GMT. The TSC follows at 1215GMT with

investors looking for any clues on Governor Carney's future. On the US calendar,

mfg PMI is released at 1345GMT, July's prior was a strong showing of 55.3. The

ISM manufacturing index follows at 1400GMT. The prior July reading of 58.1 is

expected to moderate to 57.9.