The greenback is seeing some back and forth action so far this week but is starting to gather back some poise ahead of European morning trade today. EUR/USD is down 0.35% to 1.0695 while GBP/USD is down 0.23% to 1.2385 with the dollar holding a decent advance against the commodity currencies as well.
USD/JPY though is little changed as price action continues to keep under 140.00 for now, following yesterday's fumble. The pair is now trading in between its 100 and 200-hour moving averages, so the near-term bias remains more neutral for now:
Adding to that is the fact that Treasury yields are still looking rather heavy this week, and that is weighing on the recent upside momentum. 10-year yields are down another 2 bps to 3.677% on the day currently.
Looking at the antipodeans, the stumble by Wall Street yesterday didn't do risk sentiment any good and with US futures weighed down today, that is pinning down the aussie and kiwi in particular - alongside China/global growth concerns.
AUD/USD is threatening a further break under 0.6500 at the moment while NZD/USD is down 0.6% to test the 0.6000 handle. The fall in former is potentially threatening a break towards 0.6200 next:
There is also going to be some focus on month-end flows today and that will make things a bit tricky to navigate. But as always the case, the technicals are your best guide in figuring things out. For now, there is some dollar potential in some pairs while others are keeping more tentative after yesterday's retreat in the currency.
