Early US dollar strength evaporates, AUD/USD breaks out.
The US dollar is quickly softening against most of its rivals (with the exception of JPY). There isn't a clear catalyst for the moves, unless you want to pin it on the Markit services PMI but the moves began before it was released.
It's a delicate time for the US dollar. Virtually everyone expects soft GDP and a less-hawkish Fed. With dollar longs crowded, there has been a rush to the exits in the past two weeks but traders could just as quickly rush back in if/when US economic data begins to improve.
The euro is now flat on the session at 1.0873 after falling as low as 1.0820. Another spot to watch is the Australian dollar, as it breaks the April highs.
AUDUSD breaking the April highs