[AndrewWoo]

The US dollar (USD) has come under renewed, broad-based pressure following better-than-expected data in the Eurozone and rising risk appetite. The Eurozone August PMIs for manufacturing and services rose to 47.9 and 49.5, respectively, from 46.3 and 45.7 in July, supported by strong figures from the region’s two
largest economies, Germany and France. As the global economy recovers and risk appetite improves on a trend basis, market expects the USD to fall further as global investors use it as a funding currency to buy higheryielding assets. Technical indicators are clearly bearish for the DXY index, as the 55-day moving average, currently at 79.43, provided strong resistance in the latest rally and short-term momentum indicators are pointing down. As such, we should see a retest of the 2009 low on 5 August at 77.43.