The USD gained ground at the start of the week. USDJPY attempted to test 120. AUD sold off aggressively to 0.777 despite the PBoC’s rate cut, and China’s better PMI. EUR traded to a low of 1.116 before retracing to 1.118. Most USDAsia pairs rose on the open, but have since recovered a little. MYR underperformed, still down 0.7% to 3.629. USDIDR briefly traded to 13,000 before paring gains to 12,982. USDINR also moderated to 61.82, to the same levels as the pre-budget announcement. The PBoC fixed USDCNY 38pips higher to 6.1513, highest since November 2014, and above our model’s estimate. This drove USDCNY spot to test the 2% band above the fix.
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