The dollar was hit from all sides yesterday...>

FOREX: The dollar was hit from all sides yesterday as Trump criticized the Fed's

rake hikes, CPI data came in weak, and a report broke that US Treasury staff are

to find that China is not manipulating the yuan.

- USDCNH had its weakest day since Aug 24 with the pair breaking cleanly back

through 6.90 to test the key 55-dma once again.

- A lack of escalation in the Italian budget situation allowed EURUSD to break

back above last week's high to close just below the 1.16 level. The dollar's

weakness vs the euro was out of line with the widening of real yield spreads

between US and Germany.

- USDJPY was undermined by both risk-off in stocks and general dollar weakness

which saw 112 give way temporarily, with the recovery back through looking weak.

- Yen crosses benefit with EURJPY traded back up through its 55-dma support

level as EURCHF also broke higher on a return of risk-on trading in forex

markets. 

- AUD and NZD continue to recover from their recent lows, keeping AUDJPY above

its Sep lows despite a break below the 80 level yesterday.