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SYDNEY, Sept 17 (Reuters) - AUSTRALIAN CREDIT/FOREX (0200 GMT) SNAPSHOT__________

FOREIGN EXCHANGE (against previous Sydney close)

<AUD=> 0.8035/36 (0.7903/08) 1.2127/41 (1.2119/29)

<AUDJPY=R> 85.46/51 (82.48/51) 106.38/42(104.33/35)

<AUDEUR=R> 0.5659/63 (0.5540/41) 1.4187/89 (1.4273/77)

DEBT FUTURES CASH YIELDS

90-DAY BILL<YBAc1> (DEC) 93.220(-0.014) (DEC) 94.655(-0.145) 5.43(5.30)

10-YR BOND (DEC) 94.460(-0.130) 5.58(5.48)

3/10 SPREAD +0.195 (+0.235) AUST/US 10-YR SPREAD +200(+210)

S&P/ASX 200 4780.7(4750.8) US10-YR 3.58(3.37)

__________________________ Sept 17_____________________________

DATA: Australia's international merchandise imports totalled A$18.455 billion ($14.6 billion) in August, from a revised A$19.603 billion in July, the Australian Bureau of Statistics said on Wednesday.

* The annualised growth rate of the Westpac Institutional Bank-Melbourne Institute leading index of economic activity slowed to 3.7 percent in July, but that was from an upwardly revised 4.0 percent in June. Previously June's growth rate had been reported at just 2.0 percent.

* In its regular daily money market operation, the Reserve Bank of Australia (RBA) added a total A$4.285 billion ($3.4 billion) in cash. That was nearly twice the market's estimated cash need of A$2.18 billion, implying that commercial banks' cash balances with the central bank would expand.

_______________________________________________________________

* The Australian dollar recovered from lows against the yen and the U.S. currency on investor relief after the U.S. Federal Reserve moved to rescue the embattled American Insurance Group (AIG).

* The U.S. government agreed to lend $85 billion to prevent AIG from collapsing. For more see. AIG's rescue comes just days after the bankruptcy of investment bank Lehman Brothers and the takeover of Merrill Lynch by Bank of America sent shockwaves across the globe, forcing investors to shed risky investments.

* The Aussie was also helped by higher commodities prices, espcially oil prices which rebounded over $3 a barrel.

* The Aussie climbed to 85.46 yen from 82.48 yen late here on Tuesday, off a 2- year low of 81.39 yen, struck in the previous session.

* The Aussie regained the 80 U.S. cents level, rising to as high as $0.8075 from $0.7903 late here on Tuesday when it plumbed 13-month lows of $0.7852.

* Domestic attention will focus on a speech by Reserve Bank of Australia (RBA) Governor Glenn Stevens at 1:30 p.m. (0330 GMT). Markets are fully pricing in a rate cut in October and investors will be keen to know his views about the fresh turmoil in global financial markets.

* Australian bond futures were lower, tailing U.S. Treasuries which slumped after the Federal Reserve left interest rates unchanged and the rescue of AIG saw safe-haven inflows take a breather.

* Bonds had been buoyed in recent sessions by a rush to safety. Expectations that tight credit conditions could drive central banks across the world to ease policy have also supported government bonds.

* Three-year bond futures were down 0.145 points at 94.655, while the 10-year bond contract lost 0.130 points to 94.46.

(Reporting by Anirban Nag; Editing by Jonathan Standing)

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