Despite US Tsy yields rallying to 4-month....>

DOLLAR: Despite US Tsy yields rallying to 4-month highs, the breakdown in

correlation with the USD continues as the DXY holds below the 100-dma, last

94.49. NZD sits top of the G10 pile with gains of 0.56% following the strong NZ

GDP release overnight, closely followed by EUR (+0.09%) & JPY (+0.09%). Gold

holds toward the upper end of its $1203.17-1206.64 range, targeting a break of

the 50-dma & Aug28 high at $1207.34/1214.35. US data scheduled today from

Jobless Claims & Existing Home Sales. Claims are expected to rise by 4,000 to a

still-low 208,000 level in the September 15 employment survey week after a

decrease to 204,000 in the previous week, a 49-year low. Existing home sales are

expected to tick up very slightly to a 5.36 million annual rate in August after

slipping further to a 5.34 million rate in July. Large option-expiries of note

for today's NY cut. EURUSD $1.1700(E1.0bn) & USDJPY Y112.00-20($1.17bn).