The dollar remains soft in trading today as the dollar index slips to fresh 3-year lows
The Chinese yuan leads the day after a surge thanks to the PBOC fixing the USD/CNY at its weakest (meaning a stronger CNY) level since May 2016. The acknowledgement by the PBOC this time around that it is allowing USD/CNY to fall below the 6.5000 level is a welcome sign to traders that will allow the CNY to strengthen further. The 6.5000 level has been a warning sign in recent times as I highlighted here last week.
Meanwhile, the AUD and NZD lead on the day, playing catch up against the dollar - as they underperformed a little in terms of gains against the greenback compared to most major currencies who posted gains on Friday. Latest CFTC data also shows that leveraged funds have turned back to net long contracts in AUD after it changed to a net short position in the prior week.
Other major currencies continue to extend gains against the dollar so far today with little else happening. There's not much on the calendar and it's also a US holiday, so trading may be a little subdued - but do expect some Brexit noise to come in later in the day, so that may shake things up a little.
