USD was unloved even as global decline in equities, commodities and
emerging currencies worsened, falling against 6 G10s. The Dollar Index
trended lower through all trading sessions before settling at 14-week low of
93.33 as weakness across global markets firmed up the view that the Fed
would have to refrain from policy move come Sept.
· While continued unwinding of bets for Sept Fed rate hike point to
further USD weakness, we suspect that it may be time for a technical
rebound after 4 days of sharp declines. The Dollar Index has found firm
support around 92.62 – 93.13 and we reckon that this would be the
platform on which the index could bounce to circa 93.96 – 94.09.