Same old story in the FX market as the USD extends losses in the final trading day of 2017
The year-end final week theme continues, as the dollar remains on the backfoot today. CNY leads gains after the PBOC strengthened the yuan at the fix to its highest point in 3 months. Should USD/CNY remain near current levels, this year would be the best performance in the yuan against the dollar since 2008.
Other major pairs are more quiet today, as they post some gains against the dollar. NZD leads the way in the major bloc, as AUD/NZD selling boosts the kiwi a little more than the other pairs. AUD/NZD has fallen below the Dec trendline support today after once again failing to break through the 100-day MA (red line):
Liquidity remains thin, so be wary that these moves could be exaggerated a little due to that. But yeah, nothing has been going right for the dollar in the last week regardless. US 10-year yields fell from 2.50% to 2.43%. Dollar funding needs continue to ease into the final week of the year. Possible year-end rebalancing/position adjustments. You name it, it's all out there against the USD in the last few days.
