USD Pressure Persists

FOREX: The USD continued to come under pressure overnight, with fresh cycle lows registered for the DXY, as bears forced an extension of the recent round of pressure.

• A lower set of USD/Yuan crosses, seemingly driven by onshore Chinese participation, and fresh cycle highs for EUR/USD were at the fore, with a firmer than expected round of Caixin manufacturing PMI also noted (even with the difficulties surrounding making any clear inference from that datapoint at present). Earlier in the session market contacts pointed to levered sellers keeping a lid on USD/JPY as it had a look above Y106.00.
• USD/CNH pushed through the Fibonacci support level we identified yesterday. Downside focus now moves to the July 1 2019 low at CNH6.8168.
• EUR/USD was still not able to move into the "promised land" above $1.2000, topping out at $1.1997 in Asia-Pac trade.
• The AUD saw little in the way of tangible reaction to the extension of the RBA's TFF, tweaks in the language surrounding forward guidance, along with the Bank's glass half full approach re: the Australian economy and introduction of the aforementioned matter of fact passage re: the level of the A$ to its statement. The RBA left its broader monetary policy settings unchanged.
• Focus Tuesday turns to the remainder of the final global manufacturing PMI readings and the Manufacturing ISM data from the US. As usual, the employment components will take plenty of focus ahead of Friday's August nonfarm payrolls report. On the central bank front, Fed Governor Brainard and ECB's Knot are both due to speak.