EURUSD bounced off overnight lows to trade at 1.2867, AUDUSD similarly stabilized at 0.8966 while USDJPY is at 108.62. EM Asia currencies gapped weaker against the dollar, retraced slighly then stabilized, outperforming the overnight 0.7% and 1.2% falls in the EUR and the JPY. Within the complex, the MYR weakened most, falling 0.6% against the dollar to 3.2385. USDKRW opened at 1043.32, but recovered to trade steadily at about 1040.75, 0.5% weaker on the day. USDCNY fixed 40pips higher to 6.149, slightly less than our DXY-based model predicted. Although USDCNY is slightly higher, USDCNH reversed all of its early gains to trade flat at 6.1525.
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