mod_proxy, compression, and chunked responses

[Xavier Noria]

I have an application server behind nginx that may output chunked
responses, and would like to use compression for them as I do for
ordinary responses.

Is that possible with nginx? If it is, is it possible in a way that
nginx compresses stuff on the fly and sends chunked (compressed)
responses itself rather than buffering the original response and
sending a non-chunked response itself? (That would defeat the purpose
of the chunked responses.)