New Zealand Trade Balance (Aug): NZD -1.035 Bln (exp NZD -850 Mln prev NZD -649 Mln)
PBOC Fixes Yuan Reference Rate At 6.3791 (prev 6.3773)
Asia subdued amid lingering global growth woes, euro steady – RTRS
Markets overlook U.S. strength, overreact to China: Fed's Lockhart – RTRS
Gloomy PMI data weigh on Japan equities – FT
The US Dollar weakened slightly in the overnight trading session. EUR/USD found good support ahead of the 1.11 level in yesterday's NY session and was able to bounce from there, reaching a high of 1.1195 in Asia. GBP/USD is still struggling after the break of 1.5330 support. It reached a low of 1.5220 yesterday and is currently consolidating around 1.5255. A test of the 1.5160 support level (last week's low) seems likely.
Japanese markets opened after being closed for three days and traders were offering USD/JPY immediately at the Tokyo open. The pair declined from 120.35 to a low of 119.85. While the USD has been overall strong this week, it was struggling to make gains against the Yen amid the risk-off sentiment in global equity markets.
AUD/USD broke sub-0.70 and won't any major support until 0.6905, the current yearly low. NZD/USD is doing slightly better as it found solid support around the 0.6240 level and is approaching 0.63 now.