The dollar had a brief, small rally in early Asian trading, but just as quickly gave up gains, leaving suspected PBoC intervention selling USDCNY above 6.26 onshore to be the main event for the day, in our view. USDCNY fixed 7pips higher to 6.1694, but spot traded as high as 6.2636 and USDCNH peaked at 6.2701 in spot. Away from this, EURUSD and AUDUSD were steady at 1.3636 and 0.9262 respectively. USDJPY is 101.94. In EM Asia USDKRW is lower at 1022.45 while both high yielders are slighly weaker; USDIDR is up at 11,615 and USDINR has nudged up to 59.1525.
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Credit Suisse