The Dollar lifted during the Asian session before settling to a consolidation following the open of European markets. The USD index (DXY) is showing a 0.2% gain heading into the New York interbank open, at 95.35, earlier posting a two-day high at 95.48, remaining well below the 14-month high seen last week at 96.98. The gain today breaks a run of five straight down sessions. EUR-USD has concurrently sank to a two-day low of 1.1542, putting in some distance from yesterday's two-week peak at 1.1623 (which almost exactly markets the present situation of the 50-day moving average), before settling some 20-30 pips higher. The Euro has been trading neutrally against the Yen, Sterling and most other currencies, while the earlier declines reflected a broader Dollar buying dynamic, rebounded some after five straight down sessions. The flash estimate of the Eurozone August composite PMI rose to 54.4 from 54.3 in July, though slightly missed the median forecast for 54.5. ECB's Weidmann argued that it's time to scale back monetary expansion, with the economic upturn contrasting with "exceptionally expansionary" monetary policy (although admitting that a prolonged trade war could be "severely detrimental" to the global economy"). USD-JPY printed an eight-day high of 110.93, extending the rebound from Monday's eight-week low at 109.77. The Australian Dollar tumbled amid political turmoil following the resignation of the prime ministership of Malcolm Turnbull along with three cabinet members. AUD-USD has lost over 0.7% in falling to six-day lows under 0.7300. The PBoC set the reference USD-CNY rate higher, to 6.8367 after 6.8271 yesterday.
