The dollar is marginally stronger today. AUDUSD rallied ahead of the RBA minutes only to sell off to 0.9390 after the minutes despite little new information relative to the March policy statement. EURUSD dripped lower to 1.3816 while USDJPY pushed up to 101.88 driven by Japanese buying. Most EM Asia dollar pares are higher with USDKRW rising to 1042, seemingly without help from intervention.China fixed USDCNY 40pips higher to 6.1571, a fourth consecutive day above what our model based on changes in the DXY suggests. The clear indication is that the PBoC’s short squeeze is not finished.
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Credit Suisse