The US dollar is catching a near term bid and for this to turn broad based, we prefer to see the US dollar index above one month trendline resistance and the Asia dollar index below 115.00. Until then, the bounce is likely corrective. The USD is particularly strong against the AUD and this is perhaps unsurprising given the repeated bearish price action in the Shanghai Composite (approaching its March 2009 low). AUD/CAD has room for further downside to the base of its range since last year.
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Barclays Capital