AUD/USD slowly moving closer to the 0.6000 level
The market is switching back to the greenback once again after a mild fallout yesterday with AUD/USD falling to fresh lows of 0.6056 while NZD/USD is on the verge of breaking back under the 0.6000 level.
Meanwhile, EUR/USD has also fallen to a session low of 1.1104 with a potential test of key support levels eyed in the sessions ahead.
USD/CAD is also back above 1.4000 now to a high of 1.4055 as we see oil prices trim gains amid a bit of choppy trading for risk to start the European morning.
The gains in the dollar could be hinting that dollar funding pressures are still persisting - I would argue that is certainly the case for emerging markets and Asia - and all of this could mean more liquidation of assets should central bank action prove not to be enough.
The yen-dollar 3-month basis swap spread has now expanded back to 126 bps from 80 bps earlier at the start of the day:
