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Greenback Extends Losses

FOREX

The greenback has extended losses in Asia, another stronger than forecast Yuan fixing and firmer regional equities weighed today. BBDXY has printed a fresh 3 month low, the index is down ~0.3% today. US Tsy Yields have also ticked lower.

  • Yen is the strongest performer in the G-10 space as risk-on flows provide a level of support. The low from Oct 3 and key support at ¥147.43 has been breached. Bears now target ¥145.91, trendline support drawn from Mar 24 low.
  • The Kiwi is up ~0.5%, NZD/USD is testing the 200-Day EMA ($0.6063) and the pair sits at its highest level since early August.
  • AUD/USD is ~0.4% higher, the pair last prints at $0.6580/85. Technically resistance comes in at $0.6382, 50.0% retracement of Jul-Oct bear leg. Support is at $0.6453, Nov 17 low.
  • Elsewhere in G-10 EUR and GBP are both up ~0.2% reflecting the broader USD move.
  • The docket is thin in Europe, further out we have Canadian CPI and the FOMC minutes of the November meeting.

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